PPF (Public Provident Fund) – Invest upto ₹ 1,50,000 p.a.

Amendments to the Public Provident Fund  (PPF) Act, 1968 were notified by the Central Government vide Gazette Notification No. G.S.R. 588 (E) dated 14th August 2014.

As per gazette notification the annual ceiling on investment under Public Provident Fund (PPF) Scheme is now Rupees 1,50,000.


Other salient features of the Scheme are:

  • Tax Free Interest of 8.7%.
  • Account can be opened in Post Office, State Bank of India or in any designated branches of other nationalized and commercial banks.
  • A minimum amount of ₹ 500 and maximum amount of ₹ 1.5 lakh can be deposited in a financial year
  • Facility of loan available from 3rd financial year and withdrawal facility from 7th financial year from the year of opening.
  • Deposit qualifies for deduction u/s 80-C of Income Tax Act upto ₹ 1.5 lacs and interest earned is completely tax free.
  • Account can be transferred from one place to another, Post Office to Bank and vice-versa.

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Comments

  1. on completion of 15 years or extended period of 5 years block . if the PPF A/C is not closed and not operated further , so will the a/c continue to get interest and at what rate please guide . tallychetanji@gmail.com

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