Introduced in 1968, the public provident fund is a savings-cum-tax saving investment vehicle. The scheme is one of the most sought-after investment plans to park your savings for retirement. PPF is a 15-year plan, which can be extended for a block of 5 years. You can open the account in a designated post office or a bank branch. One can open a PPF account in almost all Indian nationalised banks like SBI, Bank of India, and Central Bank of India as well as private sector banks like HDFC Bank, ICICI Bank and Axis Bank.
One of the advantages of investing in a ppf scheme is the tax benefits. Under Section 80C of the Income Tax Act, 1961, PPF contributions made every year are eligible for tax deductions. The tax deductions are eligible only for PPF contributions up to Rs 1.5 lakh in a financial year. Interests earned on PPF deposits are tax-free, while wealth tax is not applicable on PPF accounts. Therefore, PPF benefits you triple exemptions– the deduction on deposits, tax-free returns and no wealth tax. To claim these benefits on your public provident fund account, you need to submit the details of the PPF investments made in a year in your income tax returns.
Therefore, if you are looking for a safe investment option, you should consider opening a PPF account and earn guaranteed returns. Here is the documentation and eligibility process for the ppf scheme.
Eligibility:
Residents of India can open a Public Provident Fund account. A minor can open the account as well, but parents or guardians will operate it. Minor can hold their accounts after attaining the 18 years of age.
Documents:
1) An identity proof & passport size photographs:
PAN card, driving license, aadhar card, passport or Voter ID card.
2) A residence proof:
Electricity bill, telephone bill or ration card
3) Nomination form:
You can fill the nomination form for the ppf scheme so that the amount will be paid to the appointed nominee, in the unfortunate event of your death or due to any permanent disability.
4) Pay-in-slip:
These slips are available at the bank branch or the post office.
You are advised to carry the original documents along with the Xerox copies. The authorities will verify the original documents but submit them along with the self-attested xerox copies of the certificates.
After opening the ppf account, the bank will issue a passbook to you. It will contain accountholder’s information such as name, number, photograph and the balance. The transactions made within the account will reflect in the passbook. You can also access the account if you have an online banking facility.
One of the advantages of investing in a ppf scheme is the tax benefits. Under Section 80C of the Income Tax Act, 1961, PPF contributions made every year are eligible for tax deductions. The tax deductions are eligible only for PPF contributions up to Rs 1.5 lakh in a financial year. Interests earned on PPF deposits are tax-free, while wealth tax is not applicable on PPF accounts. Therefore, PPF benefits you triple exemptions– the deduction on deposits, tax-free returns and no wealth tax. To claim these benefits on your public provident fund account, you need to submit the details of the PPF investments made in a year in your income tax returns.
Therefore, if you are looking for a safe investment option, you should consider opening a PPF account and earn guaranteed returns. Here is the documentation and eligibility process for the ppf scheme.
Eligibility:
Residents of India can open a Public Provident Fund account. A minor can open the account as well, but parents or guardians will operate it. Minor can hold their accounts after attaining the 18 years of age.
Documents:
1) An identity proof & passport size photographs:
PAN card, driving license, aadhar card, passport or Voter ID card.
2) A residence proof:
Electricity bill, telephone bill or ration card
3) Nomination form:
You can fill the nomination form for the ppf scheme so that the amount will be paid to the appointed nominee, in the unfortunate event of your death or due to any permanent disability.
4) Pay-in-slip:
These slips are available at the bank branch or the post office.
You are advised to carry the original documents along with the Xerox copies. The authorities will verify the original documents but submit them along with the self-attested xerox copies of the certificates.
After opening the ppf account, the bank will issue a passbook to you. It will contain accountholder’s information such as name, number, photograph and the balance. The transactions made within the account will reflect in the passbook. You can also access the account if you have an online banking facility.
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