What is PPF Account? And its benefits,Tax Exemption

What is PPF Account And its benefitsTax Exemption

PPF Account

What is PPF Account? And its benefits,Tax Exemption

PPF Account (PUBLIC PROVIDENT FUND) is a scheme that ministery of finance started back in year 1968 to encourage people save money and use it in needy hours especially in retirement’s period.

In INDIA this scheme has become so popular among all INDIANS that everyone wants to open ppf accounts to save money and take tax deduction benefits.

How to open PPF Accounts?

In india PPF Account has gained much momentum.So here is a question how we can open PPF.

we can open this Account either in a post office or in any govt, Bank and some of private banks.

Here is the list of banks where you can open PPF accounts:

  1. SBI
  2. Punjab & Sind Bank
  3. punjab national bank
  4. bank of punjab
  5. central bank of india
  6. canara bank
  7. Dena bank
  8. IDBI Bank
  9. united Bank of India
  10. HDFC
  11. ICICI Bank.

Further You Should open you PPF in Bank as  bank provide you online depositing facility whereas POST office department does not give you this facility.

You can also open PPF accounts online or by visiting a bank where your saving bank account is there.

Key Features of PPF:

  1. Current interest rate is 7.9% For 2017-18.
  2. Account opening amount is 500.
  3. Maximum 150,000 Rs we can deposit in our PPF.And minimum 500.
  4. Time period of the scheme is 15 years.
  5. Interest income from PPF is tax free upto 150,000 Rs us 80C.
  6. You can depositAmount in 12 instalments Further if you wish to pay in one go you can pay maximum 100000 Rs.

How you can withdraw money?

PPF Account also provide you the facility of withdraw money but on one condition that is 7 years you must complete then you can withdraw 50% of Amount you have deposited so far.


PPF Acoount also give you loan facility but on one condition.That is if you have open your ppf accounts in 2017 then you can only take loan between 2020 and 2023.

Loan interet rate is 2% higher than you get in PPF.For example for year 2017-interest rate for PPF is 7.9% then 9.9 is interest rate to take loan.


PPF Account is  a great source of tax exemption benefit that is why it is so popular among Salaried class in particular and among indians in general.

You can take 150,000 Rs tax benefit under section 80G on interest income you got from PPF in a financial year.


Form A – To open a Public Provident Fund Account (PPF Account)

Forms B – To make deposits into / repay loans taken against a PPF account

Form C – To make partial withdrawals from a PPF account

Forms D – To request a loan against a PPF account

Form E – To add a nominee to a PPF account

FORMs  F – To make changes to PPF Account nomination details AND

Form G – To claim funds in a PPF account by a nominee/legal heir.

AND Finally PPF Accont is a great source of saving income,tax saving So open this Account today and have better and secure future.

AND FInally read our article  how to take tax benefit under section 80G


Kuldeep Singh

is a professional blogger,teacher and income tax expert

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