Public Provident Fund ( India ) - Wikipedia Public Provident Fund ( India ) This article 's tone or style may not reflect the encyclopedic tone used on Wikipedia. See Wikipedia 's guide to writing better articles for suggestions. ( May 2014 ) The Public Provident Fund is a savings - cum - tax - saving instrument in India, 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. However, Income Tax & other Government authorities can attach the account for recovering tax dues. Contents 1 Eligibility 2 Investment and returns 2.1 Interest rates 2.1. 1 2016 - 17 2.1. 2 2017 - 18 2.1. 3 2018 - 19 3 Duration of scheme 4 PPF maturity options 5 Loans 6 Features 7 Withdrawals from PPF account 8 Nomination 9 PPF defaults and revival 10 Premature closure of PPF account 11 Transfer of account 12 PPF tax concessions 13 See also 14 References 15 External links Eligibility Individuals who are residents of India are eligible to open their account under the Public Provident Fund, and are entitled to tax - free return later. Investment and returns A minimum yearly deposit of Rs. 500 is required to open and maintain a PPF account. A PPF account holder can deposit a maximum of Rs 1.5 lacs in his / her PPF account ( including those accounts where he is the guardian ) per financial year. There must be a guardian for PPF accounts opened in the name of minor children. Parents can act as guardians in such PPF accounts of minor children. Any amount deposited in excess of Rs 1.5 lacs in a financial year wo n't earn any interest. The amount can be deposited in lump sum or in a maximum of 12 installments per year. However, this does not mean a single deposit once in a month. The Ministry of Finance, Government of India announces the rate of interest for PPF account every quarter. The current interest rate effective from 1 January 2018 is 7.6 % Per Annum ' ( compounded annually ). Interest will be paid on 31 March every year. Interest is calculated on the lowest balance between the close of the fifth day and the last day of every month. Interest rates 2014 - 2016 Period Interest Rate 2014 - March 2016 8.7 % 2016 - 17 Quarter Interest Rate April 2016 - June 2016 8.1 % July 2016 - September 2016 8.1 % October 2016 - December 2016 8.0 % January 2017 - March 2017 8.0 % 2017 - 18 Quarter Interest Rate April 2017 - June 2017 7.9 % July 2017 - September 2017 7.8 % October 2017 - December 2017 7.8 % January 2018 - March 2018 7.6 % 2018 - 19 Quarter Interest Rate April 2018 - June 2018 7.6 % Duration of Scheme Original duration is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each. PPF maturity options Subscriber has 3 options once the maturity period is over. Complete withdrawal ' Extend the PPF account with no contribution -- PPF account can be extended after the completion of 15 years, subscriber does n't need to put any amount after the maturity. This is the default option meaning if subscriber does n't take any action within one year of his PPF account maturity this option activates automatically. Any amount can be withdrawn from the PPF account if the option of extension with no contribution is chosen. Only restriction is only one withdrawal is permitted in a financial year. Rest of the amount keeps earning interest. Extend the PPF account with contribution - With this option subscriber can put money in his PPF account after extension. If subscriber wants to choose this option then he needs to submit Form H in the bank where he is having a PPF account within one year from the date of maturity ( before the completion of 16 yrs in PPF ). With this option subscriber can only withdraw maximum 60 % of his PPF amount ( amount which was there in the PPF account at the beginning of the extended period ) within the entire 5 yrs block. Every year only a single withdrawal is permitted. Loans Loan facility available from 3rd financial year up to 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12. 2011 shall be 2 % more than the prevailing interest on PPF. However, the rate of interest of 1 % more than PPF interest p.a. shall continue to be charged on the loans already taken or taken up to 30.11. 2013. Up to a maximum of 25 per cent of the balance at the end of the 2nd immediately preceding year would be allowed as loan. Such withdrawals are to be repaid within 36 months. A second loan could be availed as long as you are within the 3rd and before the 6th year, and only if the first one is fully repaid. Also note that once you become eligible for withdrawals, no loans would be permitted. Inactive accounts or discontinued accounts are not eligible for loan. Features The public provident fund is established by the central government. One can voluntarily open an account with any nationalized bank, selected authorized private bank or post office. The account can be opened in the name of individuals including minor. The minimum amount is Rs. 500 which can be deposited. The rate of interest at present is 7.6 % per annum, which is also tax - free. The entire balance can be withdrawn on maturity. Interest received is tax free. The maximum amount which can be deposited every year is Rs. 1, 50,000 in an account at present. The interest earned on the PPF subscription is compounded annually. All the balance that accumulates over time is exempted from wealth tax. Moreover, it has low risk -- risk attached is Government risk. PPF is available at post offices and banks. Withdrawals from PPF account There is a lock - in period of 15 years and the money can be withdrawn in full after its maturity period. However, pre-mature withdrawals can be made from the start of the seventh financial year. The maximum amount that can be withdrawn pre-maturely is equal to 50 % of the amount that stood in the account at the end of 4th year preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower. After 15 years of maturity, full PPF amount can be withdrawn and all is tax free, including the interest amount as well. Nomination Nomination facility is available in the name of one or more persons. The shares of nominees may also be defined by the subscriber. PPF defaults and revival 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 Rs. 50 as penalty for each inactive year. He / she also needs to deposit Rs. 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. If balance amount in the account of a deceased is higher than Rs. 1, 50,000 then the nominee or legal heir has to prove the identity to claim the amount Premature closure of PPF account The Public Provident Fund ( Amendment ) Scheme, 2016 made changes in Paragraph 9, for sub-rule 3 ( C ) of Public Provident Fund Scheme, 1968 to facilitate the premature closure of PPF Account. 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 %. Transfer of 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, after 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. PPF tax concessions Annual contributions qualify for tax deduction under Section 80C of income tax. The tax benefit is capped at Rs 1.5 lacs per financial year. Contributions to PPF accounts of the spouse and children are also eligible for tax deduction. PPF falls under EEE ( Exempt, Exempt, Exempt ) tax basket. Contribution to PPF account is eligible for tax benefit under Section 80C of the Income Tax Act. Interest earned is exempt from income tax and maturity proceeds are also exempt from tax. See also Equity - linked savings scheme National Pension System National Savings Certificates ( India ) References Jump up ^ `` PPF rate to fetch 7.6 % : Why it is still a winner ''. Jump up ^ `` PPF Scheme ''. Retrieved 20 October 2014. Jump up ^ `` Interest rates on PPF, other savings to be lower from April 1 ''. The Economic Times. 2016 - 03 - 31. Retrieved 2017 - 06 - 16. Jump up ^ `` PPF Interest Rate History & What You Should Really Know ''. Stable Investor. 2016 - 08 - 24. Retrieved 2017 - 07 - 14. Jump up ^ `` Interest Rates On PPF, Other Savings Schemes Cut - NDTV ''. Retrieved 2017 - 06 - 16. Jump up ^ `` Interest on PPF and other such small savings schemes cut : What this means ''. hindustantimes.com/. 2017 - 04 - 01. Retrieved 2017 - 06 - 16. Jump up ^ Zaidi, Babar ( 2017 - 06 - 30 ). `` Government cuts PPF, NSC rate to 7.8 per cent ''. The Economic Times. Retrieved 2017 - 07 - 14. Jump up ^ `` Revision of interest rates for Small Savings Schemes for first quarter of Financial Year 2018 - 19 '' ( PDF ). dea.gov.in/. 2018 - 03 - 28. Retrieved 2018 - 04 - 03. Jump up ^ `` PPF maturity options ''. Jump up ^ `` Premature Closure of PPF Account ''. External links Find more aboutPublic Provident Fundat Wikipedia 's sister projects Definitions from Wiktionary Media from Wikimedia Commons News from Wikinews Quotations from Wikiquote Texts from Wikisource Textbooks from Wikibooks Learning resources from Wikiversity India Post. Ministry of Communications & Information Technology Retrieved from `` https://en.wikipedia.org/w/index.php?title=Public_Provident_Fund_(India)&oldid=838669168 '' Categories : Retirement in India Tax - advantaged savings plans in India Indian labour law Hidden categories : Wikipedia articles needing style editing from May 2014 All articles needing style editing Use Indian English from June 2016 All Wikipedia articles written in Indian English Use dmy dates from June 2016 Talk Contents About Wikipedia हिन्दी मराठी தமிழ் Edit links This page was last edited on 28 April 2018, at 14 : 38. About Wikipedia

Question: when can you withdraw money from ppf account
Answer: 15 years