PUBLIC PROVIDENT FUND

PUBLIC PROVIDENT FUND - 1968Scheme introduced by Central Government in 1968. The Scheme enables the members of the public to make contributions to the Fund and obtain Income Tax rebate under the relevant provisions of the Income Tax.
Eligibility
Individuals
Individuals on behalf of a minor Minimum / Maximum Investment ( w.e.f. 15-11-2002 )Minimum Rs.500/- per annum in multiples of Rs.5/-Maximum Rs.70,000/- per annum
Duration
15 years
Can be extended for one or more blocks of 5 years
Account can be discontinued but repayment of subscriptions along with interest only after 15 years. Rate of Interest8% per annum credited in account on 31st March every year calculated on the minimum balance between 5th day and end of the month.
Loans
Loan upto 25% of balance at the end of first financial year from third to sixth year. Second loan can be taken on full payment of first loan.
Withdrawals
Only one withdrawal allowed during any one year from sixth year. Withdrawal limited to 50% of the balance at the credit at the end of 4th year preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.
The account extended beyond 15 years; partial withdrawal allowed up to 60% of the balance to the credit at the commencement of the extended period.
Tax Benefits
Benefit available u/s 88 of the I.T. Act.
Interest totally exempt from Income Tax.
Amount standing to the credit is fully exempted from Wealth Tax. Other Facilities
Subscription in one or more maximum 12 instalments.
Nomination available in the name of one or more persons.
Nominee can not continue account of the deceased subscriber in his/ her own name.
An account may be transferred at the request of the subscriber free of charge by one branch of State Bank of India or its Associates to Head Post Office or vice versa.
Premature closure of a PPF account on grounds of genuine hardship could be considered only after the expiry of five years from the end of the year in which the account was opened.
The subscriber may discontinue his account anytime after joining the fund. The repayment of the subscription with interest will be made only after 15 years form the end of the financial year in which the account was opened.
Discontinued account can be revived on payment of Rs.50/- per year along with arrears of subscription of Rs.500/- per

Year	Opening Balance	Contribution To PPF	Interest@8%	Withdrawal From PPF	Closing Balance	Deduction u/s.80C
1	0	20,000	0	0	20,000	20,000
2	20,000	20,000	1,600	0	41,600	20,000
3	41,600	20,000	3,328	0	64,928	20,000
4	64,928	20,000	5,194	0	90,122	20,000
5	90,122	20,000	7,210	0	11,7332	20,000
6	11,7332	20,000	9387	0	14,6719	20,000
WITHDRAWAL PERIOD STARTS
7	14,6719	20,000	11,737	20,000	15,8456	20,000
8	15,8456	20,000	12,676	20,000	17,1133	20,000
9	17,1133	20,000	13,691	20,000	18,4823	20,000
10	18,4823	20,000	14,786	20,000	19,9609	20,000
11	19,9609	20,000	15,969	20,000	21,5578	20,000
12	21,5578	20,000	17,246	20,000	23,2824	20,000
13	23,2824	20,000	18,626	20,000	25,1450	20,000
14	25,1450	20,000	20,116	20,000	27,1566	20,000
15	27,1566	20,000	21,725	20,000	29,3291	20,000
		3,00,000	17,3291	1,80000		3,00,000