Public Provident Fund - PPF

[bansalg]

To my understanding , law says "Maximum number of deposits is twelve in a financial year." regardless of when you deposit the money. So probably you can make more than 1 deposit in a month subjected to max 12/year.

[magnet]

hmm thanks ill confirm in a day or two..becoz the pass book....i got in which ppf rule is stated it mentions not more than 1 investment per month(ppf rule 1961)....but i guess they too follow 12 rule and not this one now

ill confirm it

[smith02]

Hello at present I am rendering my services at the Arizona PEO Company and after getting to know such an in-depth knowledge regarding the public provident funds I must thank you as a lot of queries of mine have now been answered. At the same time I am looking forward to have some discussions on the share trading online, so please suggest me where I can find relevant info. on the same!

[sundara03]

I have a query.

I have one PPF account. Its tenure of 15 yr are over and I have extended to another 5 years. To my understanding I can extend three times like that. Am I right? During the extendtion period is there any limit on withdrawels? Can I withdraw all the balance and still continue the contribution for tax benefit?

Sundar

[pkjha30]

Originally Posted by sundara03

I have a query.

I have one PPF account. Its tenure of 15 yr are over and I have extended to another 5 years. To my understanding I can extend three times like that. Am I right? During the extended period is there any limit on withdrawels? Can I withdraw all the balance and still continue the contribution for tax benefit?

Sundar

During extended period same rules apply.

You can not make more than one deposit on a month or 12 deposits in a year. Minimum one deposit in a year is needed to keep it alive.Maximum 70000 can be deposited ( for tax benefit purposes). Minimum Rs. 100 in a year to keep it alive.

It is still EEE scheme meaning, Principal paid during a year, is to be counted towards tax exemption subject to overall limit of 100000.

Withdrawal is not counted towards income and hence exempt.

interest is exempt.

If you withdraw and again deposit, you will get tax exemption.
Withdrawal is subject to restriction of 25% of outstanding at the fourth year before the date of withdrawal.

You can take loan and repay (but it may not be so useful as after fourth year withdrawal permitted)

The tax benefit will depend on the income bracket you are in after the tax deductible income.

pankaj

[sundar_73]

yaaaaaaa!!!!! What a marvellous scheme. Thanks a lot.,.,.,

[Raju]

Hi Buddy,

Thanks for the info, keep it up !!

Raju.

[drpsiva]

nice post.very informative.keep it up.

[plunawat]

Hello All , I am parikshit. This is my first post and i am glad to come across such a useful website. PPF has been explained in such a detail as now i know whatever i wanted to know about.
I am a newbie in fields of investment and would appreciate any guidance to save my taxes and make future safe.

[ilyaskazi]

Excellent information!!

Thanks all for their efforts in bringing this very important information for us.

Just wondering is their any changes in rule their after ??