2 in 1! Saving and Investing in PNB PPF Account – Know the Benefits, Income Tax Reductions and more

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PNB PPF account: People looking for savings and investment can get both with Punjab National Bank (PNB) PPF account. Those interested can log on to the official website at pnbindia.in for more details on the PNB PPF account.

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Recently, PNB tweeted from its official Twitter account: “Two in one! Bhi savings, bhi investment. Open a PPF account and get attractive returns as well as tax breaks. To find out more, visit: tinyurl .com / 4pan9pf4. “

It should be noted that the Public Provident Fund Scheme was introduced by the Indian government on July 1, 1968 and offers the depositor the double advantage of an attractive yield and a tax advantage. The Scheme is operational in all branches of the PNB.

If one is ready to open a PPF account then you can check the details provided below:

Eligibility

Resident Natural person in his own name and as guardian of a minor or an insane person can open the account.

The PPF account cannot be opened in common name.

Non-resident Indians (NRI) cannot open a PPF account on 07/25/2003

HUFs cannot open a PPF account on 13.05.2005.

Accounts opened by NRIs and HUFs before the above-mentioned dates will continue until maturity. Thereafter, no extension is allowed and no interest is payable on HUF and NRI PPF accounts.

A single account can be opened by a natural person under the same name. The second PPF account opened in violation of the PPF rule will be treated as an irregular account and will be closed and bear no interest.

Opening of accounts

The PPF account can be opened at any PNB branch. The PPF account can also be opened by the IBS Retail user using Internet banking services.

Deposit

The account can be opened with a minimum initial deposit of Rs 500 and thereafter the deposit of any sum in multiple of Rs 50 can be made subject to a maximum of Rs 1,50,000 to an account during a exercise all at once or in installments.

The maximum limit of Rs 1 50 000 per natural person, includes deposits made on his own account and on the account opened in the name of the minor. The total deposit in a year, as specified, will include deposits made for default years from previous years, but excluding default charges.

Duration

The account has a term of 15 years and the account can be extended by one or more blocks of 5 years without loss of interest upon written request within one year from the due date.

Interest

Interest on PPF is payable in accordance with the Gazette Notification of the Ministry of Finance of the Government of India issued quarterly.

Loans and withdrawals

The depositor is eligible for a loan. The first loan can be contracted during the third financial year from the financial year during which the account was opened up to a limit of 25% of the amount of the loan at the end of the first financial year.

The principal of the loan is reimbursed by the account holder before the expiration of a period of thirty six months from the first day of the month following that in which the loan is sanctioned.

The repayment of the loan can be done either in one go or in several installments. Once the principal of the loan is fully repaid, the account holder will pay the interest on the loan in not more than two monthly installments at the rate of one percent, per annum of the principal for the period beginning on the first day of the month following the month in during which the loan is contracted until the last day of the month during which the last tranche of the loan is repaid.

When the loan is not repaid or is only partially repaid, within 36 months, interest on the outstanding loan amount is charged at six percent per annum instead of one percent, the year from the first day of the month following that during which the loan was obtained until the last day of the month during which the loan is definitively repaid.

At any time after the expiration of a period of five years from the end of the year during which the account was opened, the account holder can take advantage of the withdrawal by applying on form 2 (annex II) of the balance to its credit, an amount not exceeding fifty percent of the amount which appeared to its credit at the end of the fourth year immediately preceding the year of the withdrawal or at the end of the preceding year, whichever is lower. both: The Partial Withdrawal Facility will also be available on the extended account provided that the total withdrawal during the five-year block period does not exceed sixty percent of the credit balance at the start of the block period subject to the cap such as specified above can be made either in one go or in one installment.

Fiscal advantages

Currently, subscriptions to the account are deductible under article 80 C of the IT law. Interest credited to the account is totally exempt from income tax. The amount credited to the account is fully exempt from wealth tax.



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