Public Provident Fund - PPF

[pnags]

Thanks for the good discussion. Can some one tell me what were the interest rates since 1999 ?

[IshaAgarwal]

Hi

I am Isha. I live in Kolkata, India. I was working in a website development firm. And there I used to deposit a small part of my salary in PF. But last month due to some family problems I had to leave my job. Now I want to apply and withdraw the PF amount. But my company says I can apply after 60 days. Just out of curiosity I called to PF office and there employee says as soon I left the job I can apply there. I am confused!!! Can anyone pls. help? I am in need of that money.

Thanks
Isha

[srinivasa_rao]

I have a doubt regarding contributions to the PPF accounts opened in the name of self and minor children.The accounts were opened in 1991 and contributions of Rs.60,000 were made to each account.As per notification GSR 291(E) of government of India dated 6/12/2000, the ceiling on the aggregate contributions to accounts of self and all minor children of whom the individual is a guardian is Rs.70,000 (at present).Whether this notification is effective from prospective date 6/12/2000 or it is with retrospective effect.
It cannot be given effect from retrospectively because already contributions have been made from past so many years.
What are the latest government of India rulings in PPF accounts in such cases?

PS:Please reply as soon as possible.

[pkjha30]

Originally Posted by srinivasa_rao

I have a doubt regarding contributions to the PPF accounts opened in the name of self and minor children.The accounts were opened in 1991 and contributions of Rs.60,000 were made to each account.As per notification GSR 291(E) of government of India dated 6/12/2000, the ceiling on the aggregate contributions to accounts of self and all minor children of whom the individual is a guardian is Rs.70,000 (at present).Whether this notification is effective from prospective date 6/12/2000 or it is with retrospective effect.
It cannot be given effect from retrospectively because already contributions have been made from past so many years.
What are the latest government of India rulings in PPF accounts in such cases?

PS:Please reply as soon as possible.

Hi

It is prospective. But from the date of notification both accounts combined, you can not deposit more than 70000 in aggregate.The problem will come if you claim IT exemption.In any case your accounts would have matured in 2006 , i.e. after 15 years and it must be on extension.

pk

[sanyad74]

Nice Note on PPF!!
Btw what is difference in PPF and CPF?

[pkjha30]

Originally Posted by sanyad74

Nice Note on PPF!!
Btw what is difference in PPF and CPF?

PPF is Public provident fund operated by Postoffices or Approved banks, mostly Nationalised ones.
It is a small savings scheme for which various IT incentives are applicable.Interest rate is 8% currently.
Public can operate this irrespective of whether employed or not.Even Minor can operate through a Guardian/Parent. Contributions, interest earned and withdrawals are presently tax exempted.

CPF is contributory Provident Fund available to Govt/PSU Employees who joined after 1.1.2004. Employee contributes some amount, minimum being 6% and matching amount is given by Govt .Total sum earning 8% interest. Employees contribution is tax exempted.

There is another one called EPF Employees Provident Fund operated by Employees State Insurance Corporation and all establishments covered under various Labour laws employing more than 10 persons are brought under this."Workers" as defined under Workmen's Compensation Act are generally covered and it includes almost all except top management. It provides for provident fund facility to Private sector employees with both contribution from employees and employer to be paid by employer. It is transferable if you switch jobs.It earns 8.5% interest. Contribution is tax exempted.This EPF is statutory and Employer could be penalised for default.

pk

[srinivasa_rao]

Originally Posted by pkjha30

Hi

It is prospective. But from the date of notification both accounts combined, you can not deposit more than 70000 in aggregate.The problem will come if you claim IT exemption.In any case your accounts would have matured in 2006 , i.e. after 15 years and it must be on extension.

pk

Hi
Thank you for your response.I want to know where these rulings are exactly available in the net or in any government of India orders.

[pkjha30]

Originally Posted by srinivasa_rao

Hi
Thank you for your response.I want to know where these rulings are exactly available in the net or in any government of India orders.

head Postoffices will have copies of orders. You can also search on Govt of India Websites for orders.

[srinivasa_rao]

Originally Posted by pkjha30

head Postoffices will have copies of orders. You can also search on Govt of India Websites for orders.

The post-office officials are telling that these orders are effective retrospectively and not prospectively from 6/12/2000,The date of notification and denying interest for PPF accounts thats why I am looking for the orders of the government of India.
Would you kindly tell me in which website or any rule book available for these orders regarding the date of effect as there has been a great confusion.

[farooqmulla]

A newbie question ...What is the maximum tenure of years of keeping a PPF account...can one continue to keep the money in PPF post retirement as well?