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Public Provident Fund (PPF)


Public Provident Fund 1968

Oriental Bank of Commerce is authorized to operate Public Provident Fund (PPF) scheme through 300 Branches across the India. Click here to locate the Branch


Who can open the Account

  1. An Individual
  2. An Individual on behalf of a minor of whom he / she is the guardian
  3. NRIs / HUFs cannot open the account.


Subscription to the Account

  1. Minimum of Rs.500/- is to be deposited every financial year.
  2. Maximum of Rs.150000/- can be deposited in a financial year.
  3. Deposits can be made in one lump sum or convenient 12 installments in a year.


Interest

  1. Rate of interest for the financial year 2016-17 is 8.1%
  2. Interest is to be credited in the account on 31st march of every year.


Term of Account

  1. The term of the account is 15 financial years.


Extension of Account

  1. The account can be continued with deposits by exercising the option in form H to extend the account for a block of 5 years


Loans

  1. Loan facility available any time after the expiry of one year from the end of the year in which the initial subscription was made but before expiry of five years from the end of the year in which the initial subscription was made.


Withdrawals from PPF account

  1. There is a lock-in period of 15 years and the money can be withdrawn in whole after its maturity period. However, pre-mature withdrawals can be made any time after the expiry of five years from the end of the year in which the initial subscription was made.


Transferability

  1. A subscriber may apply for transfer of his account from one “Account Office” to another “Account Office”.


PPF tax concessions

  1. Subscription in PPF account qualify for tax rebate under section 80-C of Income Tax Act
  2. Interest accrued on PPF account and withdrawals thereof are fully exempted under sec. 10(11) of Income Tax Act
  3. Balances held in PPF account is also exempted from wealth tax
  4. Tax bracket for PPF is EEE i.e. (exempt, exempt, exempt).So contribution is exempted under 80c, Interest earned is tax exempted and withdrawal is also tax exempted. The entire balance in a PPF account is exempt from Wealth Tax too.