PPF refers to Public Provident Fund is a long-term scheme under Government of India which gives tax free interest return. The deposit made under
PPF account is eligible for deduction under section 80C of income tax act. Below mentioned are some important facts about PPF account details below:
1) Same as the case with PAN card, no individual can have more than one PPF account in their name. In case it gets to notice that a person is holding more than one PPF account then all the accounts saving the oldest one will be closed and the only the principal amount will be returned, rolling off all the interest earned from that account.
2) One can only make a maximum deposit of INR 1, 00,000 in a year, which is subjected to changes according to the prevailing PPF rules.
3) The minimum deposit to be made in a year is in PPF account is that of INR 500. One can make the deposit in a lump sum or in monthly installment. In case you are not able to deposit the said minimum deposit, the account would not get freeze, only the liquidity alternatives such as loan and partial withdrawal facility will be suspended until you regularize the account once again. The penalty for regularizing the account is INR 50 per year in which the contribution was not made and also the minimum INR 500 deposit for each year missed.
4) One can enjoy the benefit of tax deduction under section 80 C and also get tax free benefit on interest earned. Only those people who are actually doing the deposit can avail that benefit.
5) One cannot claim deduction on the deposition made by him or her into their parents or siblings PPF account.
6) The interest paid every month is only on the amount deposited before 5th of every month. Therefore, one won’t be earning interest on any amount being deposited after 5th.