PPT contents complete information of PPF, I have tried to bring all the information of PPF in the PPT.

1. Public Provident Fund
Savings-cum-tax-saving instrument in INDIA

2. Contents
• Introduction to PPF
• Eligibility
• How to open a PPF Account
• Features
• Loans
• Withdrawals
• Nomination
• PPF defaults & Premature Closure
• Transfer of PPF account
• PPF Tax Concessions

3. • Introduced by the National Savings Institute of the Ministry of Finance in
1968.
• The aim of the scheme is to mobilize small savings by offering an
investment with reasonable returns combined with income tax benefits.
• The scheme is fully guaranteed by the Central Government, Balance in PPF
account is not subject to attachment under any order or decree of court.
• Income Tax & other Government authorities can attach the account for
recovering tax dues.
Introduction to PPF

4. • Individual Indian residents are eligible to open accounts under the
Public provident fund and are entitled to tax-free returns.
• According to data from the Indian Ministry of Finance (Ministry of
Economic Affairs), as of August 2018, NRI (Non -Resident Indians)
cannot open new PPF accounts. However, they are allowed to
continue to use their existing PPF accounts until their 15 -year
expiration date.
• A PPF account opened in the name of a minor must have a guardian.
Parents can act as guardians on the minor's PPF account.
• One person can only have one PPF account
Eligibility

5. How to open a PPF Account
• One can voluntarily open an account at any nationalized
bank, authorized private bank or selected post office.
Accounts may be opened on behalf of individuals including
minors.

6. Features
• A minimum amount of ₹500 can be deposited.
• The maximum amount that can be deposited per year is
currently ₹150,000 into the account.
• Current interest rate is 7.1%/year (as of April 2020).
• Interest received is not taxable.
• Full balance can be withdrawn at maturity.
• Interest earned on PPF subscriptions is compounded
annually.

7. Loans
• Loans facility is available from year 3 to year 6. Interest
charged on loan made by PPF account registrant as of
December 12, 2019 will be 1% higher than effective interest
rate force on PPF.
• Public Provident Fund Scheme, 2019 has reduced the interest
margin to 1 (one) percent from the previous difference of 2
percent.
• Loans up to 25% of the balance at the end of the previous
second year are allowed. These withdrawals must be repaid
within 36 months.
• The second loan can be used as long as you are in year 3 and
before year 6, and only if the first loan is fully repaid. Also
note that once you are eligible for a withdrawal, no loan will
be given. Discontinued or inactive accounts are not eligible
for loans.

8. Withdrawals
• Any time after the expiry of five years from the end of the year in which
the account was opened, the account holder may, avail withdrawal by
applying in Form-2, from the balance to his credit, an amount not
exceeding fifty per cent. of the amount that stood to his credit at the end
of the fourth year immediately preceding the year of withdrawal or at the
end of the preceding year, whichever is lower.
• Provided that the amount of loan outstanding, if any, along with interest
shall be paid by the account holder before availing the facility of
withdrawal under this paragraph.
• The facility of withdrawal may be availed only once in a year.
• In case of an account opened on behalf of a minor, or a person of
unsound mind, the guardian may apply for the withdrawal

9. Nomination
• The nomination facility is available under the name of one
or more people.
• The shares of the nominees may also be determined by
the registrant.

10. PPF defaults & Premature Closure
• If any contribution of minimum amount in any year is not
invested, then the account will be deactivated. To activate the
bearer needs to pay ₹50 as penalty for each inactive year.
He /she also needs to deposit ₹500 each as each inactive year's
contribution.
• In case death of account holder then the balance amount will
be paid to his nominee or legal heir even before 15 years.
Nominees or legal heirs are not eligible to continue the account
of the deceased.
• Premature closure of PPF account is permitted after completion
of 5 years for medical treatment of family members and for
higher education of PPF account holder. However, premature
closure comes with an interest rate penalty of 1%.

11. Transfer of PPF account
• The account can be transferred to other branches / other banks or Post Offices and vice versa
upon request by the subscriber. The service is free of charges.
• Step 1 – Approach the bank or post office branch where the PPF account is held and ask for
the form for making the transfer. The bank or post office will provide you with a form which is
to be filled.
• Step 2 – The existing bank will then forward the certified copy of the account, the account
opening application, nomination form, and specimen signature. It will also forward the
cheque /dd for the outstanding amount in the PPF account to the new bank at the branch
specified by the customer.
• Step 3 – Once your bank receives these documents, the bank will inform you and ask you to
submit a new PPF account opening form along with the old PPF passbook. You can also
provide nominations for this new account. You will also be required to submit the KYC
documents.
• Step 4 – If you hold an internet banking facility with your bank, af ter a few weeks, check that
the transferred PPF account now shows up under the PPF account tab /link in your login. If
that is not the case, inquire the local bank branch.

12. Tax Concessions
• Annual contributions qualify for tax deduction under
Section 80C of income tax. The tax benefit is capped at
₹1.5 lacs per financial year.
• Interest earned is exempt from income tax and maturity
proceeds are also exempt from tax.

13. Source
• http://www.nsiindia.gov.in /InternalPage.aspx?Id_Pk=169
• https://en.wikipedia.org /wiki /Public_Provident_Fund_(India)

14. Thank You!