What is meaning of ppf a/c?

Question

deposit account

Answer 1

'ss' has taken away the answer to the different direction from question though he is right to say what he said.

'Guru' faltered in informing the interest rate as 8.5%. And for PPF interest rate at 8.5% had never been.

'Narkhand' has replied correctly and explained the scheme in a best way.  

Answer 2

Stands for Public Provident Fund account.This is a small saving 15 year term account, where interest is paid annually @8.5% PA.The maximum contribution per year is INR70000. The contribution is eligible for deduction under section 80C of the income tax act.Account can be opened at Post Offices or at select Bank branches.Nomination facility is available.The amount  in PF a/c can not be attached by a court of law or IT authorities.Interest and principal are not subject to TDS.After a minimum 5 year tenure withdrawals are allowed subject to certain conditions.You have to make at least one deposit in a year to keep the account alive. Minimum deposit is INR500.

Answer 3

Public Provident Fund, popularly known as PPF, is a savings *** tax saving instrument. It also serves as a retirement planning tool for many of those who do not have any structured pension plan covering them.

Public Provident Fund account can be opened at designated post offices throughout the country and at designated branches of Public Sector Banks throughout the country. The account can be opened by an individual in his own name, on behalf of a minor of whom he is a guardian, or by a Hindu Undivided Family.

Minimum deposit required in a PPF account is Rs. 500 in a financial year. Maximum deposit limit is Rs. 70,000 in a financial year. Maximum number of deposits is twelve in a financial year.

The account matures for closure after 15 years. Account can be continued with or without subscriptions after maturity for block periods of five years. Premature withdrawal is permissible every year after completion of 5 years from the end of the year of opening the account.

Loans from the amount at credit in PPF amount can be taken after completion of one year from the end of the financial year of opening the account and before completion of the 5th year.

Interest at the rate notified by the Central Government from time to time, is calculated and credited to the accounts at the end of each financial year. Presently, the rate of interest is 8% per annum.

Income Tax rebate is available "on the deposits made", under Section 88 of Income Tax Act, as amended from time to time. Interest credited every year is tax-free.

Answer 4

i just want to add a few points.

interest rate for EPF (employee's PF) = 8.5%

interest rate for PPF (Public PF) = 8.0%

most suitable for individuals lying in higher tax-bracket

i personally use it as a recurring deposit a/c :), i put a certain amount of money every month and earn 8% tax-free interest

Answer 5

ppf stand for Public Provident Fund account. Governemt and organised sector employees have provident fund schemes where they put in part of their salary and same amount is put in by the employer which a person gets when they retire.

But other people have ppf, which is high interest paying account and also a tax saving way where people put in money voluntarily for saving on tax and also for higher return. Now a days it is not so lucrative since interest given on ppf a/c has been reduced.