Public Provident Fund
Who is eligible to open a PPF account?
Any resident Indian individual, including minors, can open a PPF account. Non-resident Indians (NRIs) are not eligible to open a new PPF account, although they can continue to maintain accounts opened before becoming an NRI until maturity.
What is the minimum and maximum investment allowed in a PPF account?
The minimum annual investment in a PPF account is ₹500, while the maximum is ₹1.5 lakh. Deposits can be made in a lump sum or in a maximum of 12 installments per year.
What happens to my PPF account if I become an NRI?
If an individual becomes an NRI after opening a PPF account, the account can be continued until maturity, but further contributions are not allowed. The account will earn interest at the rate applicable to Post Office Savings Account until maturity.
Are PPF contributions eligible for tax benefits?
Yes, contributions made to a PPF account are eligible for tax benefits under Section 80C of the Income Tax Act, 1961 up to a maximum of ₹1.5 lakh per financial year.
Can I take a loan against my PPF account?
Yes, you can avail of loans against your PPF account from the 3rd financial year up to the 6th financial year. The maximum loan amount available is 25% of the balance at the end of the second year immediately preceding the year in which the loan is applied for.