PPF Knowledge Query

individuals can open their PPF accounts at many nationalised banks branches and its subsidiaries, also head post offices and selected nationalised banks since they function as 'Accounts Offices' for the PPF scheme. The interest earned under PPF is completely exempt from taxation

The minimum annual contribution for PPF is Rs.100/- while the maximum is Rs.70,000/- This subscripttion also qualifies for rebate under chapterVI. Since the subscripttion is payable in multiples as low as Rs.5/-, certain investors who like to enjoy complete liquidity of funds as far as possible contribute only at the end of the financial year. Loans can be obtained up to 25 percent of the balance by the end of the 2nd preceding financial year.

 No loans can be availed after the end of the 6th financial year when the withdrawal facility begins.

Partial withdrawals form probably the best part of PPF. From the 7th year itself, the account holder is entitled to withdraw 50 percent of the balance to his credit at the end of the 4th or the 1st previous financial year, whichever is lower. This facility aids liquidity since the amount can be used for any purpose.