PPF Account: Now you can open an online ppf account in the State Bank of India using SBI online through the user id & password of your net banking. A PPF account refers to a Public Provident Fund account, which is a popular long-term investment option available in India. The PPF scheme is backed by the Indian government and is designed to provide individuals with a secure and tax-efficient savings avenue.
How to open PPF account online in SBI?
Step: 01 Login to SBI Online to open an online public provident fund account
Step: 02 Now click on the ‘Request & Enquiries’ tab
Step: 03 Now click on the ‘New PPF Account’ option from the dropdown menu
Step: 04 You will be redirected to the ‘New PPF Account’ page, where your details will be displayed
Step: 05 Now fill the bank branch code of the bank where you want to open ppf account and bank branch details
Step: 06 Fill your personal information and click on ‘Proceed’
Step: 07 Now a pop-up displays “Your Form Submitted Successfully”
Step: 08 Now download the form with the reference number
Step: 09 Now click on ‘Print PPF Online Application’ to print this form.
Step: 10 Within 30 days, take this form and passport photo to the bank and submit it there.
What is tax collected at source and how to claim tax collected at source 2023
A PPF account refers to a Public Provident Fund account, which is a popular long-term investment option available in India. The PPF scheme is backed by the Indian government and is designed to provide individuals with a secure and tax-efficient savings avenue.
Here are some key points about PPF accounts:
- Eligibility- Any resident individual of India can open a PPF account. Non-resident Indians (NRIs) are not eligible to open new accounts, but if they already have one, they can continue to operate it until maturity.
- Account Opening- PPF accounts can be opened at designated post offices, select nationalized banks, and some private banks. The account opening process requires filling out an application form and submitting the necessary documents (proof of identity, address, and photograph).
- Duration and Deposits- The PPF account has a maturity period of 15 years, which can be extended in blocks of 5 years after maturity. A minimum deposit of Rs. 500 per year is required, and the maximum annual deposit allowed is Rs. 1.5 lakh. Deposits can be made in a lump sum or in installments (up to 12 times in a year).
- Interest Rate:- The interest rate on PPF accounts is set by the government and is subject to change periodically. Historically, PPF interest rates have been higher than most other savings instruments. The interest is compounded annually and is currently tax-free.
- Tax Benefits:- Contributions made to a PPF account are eligible for tax deductions under Section 80C of the Income Tax Act, up to the specified limit of Rs. 1.5 lakh per year. Additionally, the interest earned and the final maturity amount are both exempt from tax.
- Withdrawals and Loans:- Partial withdrawals from the PPF account are allowed after the completion of the 6th financial year. The amount available for withdrawal is subject to certain limits and conditions. Loans can also be availed against the PPF account balance from the 3rd to the 6th financial year.
- Transfer and Nomination:- PPF accounts can be transferred from one authorized bank or post office to another. Nomination facilities are available, allowing the account holder to nominate a person who will receive the funds in case of the account holder’s demise.
