Central Government introduced Public Provident Fund Scheme to increase the saving habits of Indian citizens. PPF accounts are locked for 15 years and thus ensuring retirement funds.


What is the Lock in Period for Public Provident Fund Scheme (PPF)?

The lock in period for PPF Scheme is for years. You cannot withdraw your money for a period of 15 years.

What is the minimum and maximum deposit under Public Provident Fund Scheme (PPF)?

The minimum deposit is Rs. 500 and maximum is Rs. 150000 in a financial year. You have to deposit minimum 500 Rs. in a year.

Guide on Public Provident Fund-PPF and rules

What if minimum amount of Rs. 500 is not deposited in PPF account?

If your account is not credit with Rs. 500 or not transacted at all, the account becomes a discontinued account. You can activate your discontinued account by deposit money in your PPF account along with Rs. 50 as defaulting fee for year of default.

Can I withdraw money from my PPF account before 15 years?

No, you cannot withdraw or close your PPF account before maturity. The account can be closed and should be closed only on death of the account holder.

PPF has to be closed on death of account holder and cannot be operated or continued by his legal heirs or representatives.

What are conditions for depositing money in Public Provident Fund Scheme (PPF)?

Minimum deposit in a year is Rs. 500 and maximum is Rs. 150000. You can deposit only in multiples of Rs. 100. You can deposit entire amount in a single payment or you can also deposit in installments. However installments are limited to 12 in a year and 2 in a month. It is not compulsory to deposit every month. You can deposit at any time subject to maximum installments in a year and month.

Who can open a Public Provident Fund Scheme (PPF)?

Any individual can open the PPF account. Even minors can open Public Provident Fund account through guardians.

You cannot open a Joint account. HUF (Hindu Undivided Family) cannot open PPF account.

Any individual can open only a single account. If you open more than 1 account, all other accounts will be closed and only principal amount will be repaid.

Non Resident Indian (NRI) cannot open a PPF account. However if an account was already opened before becoming NRI, the account can be continued.

Grandfather or Grandmother cannot open account in the name of their minor grandson or granddaughter.

Is loan facility available against the deposit in PPF account?

Yes, the loan facility against your PPF account is available from 4th to 6th year subject to 25% of the deposit available in your account.

What are the benefits under Income Tax Act, 1961 for the deposits made in your PPF Account?

  1. Deposits made in your PPF account qualify for deduction under section 80C.
  2. Interest in your PPF account is totally tax free. You do not have to pay any tax on the interest earned by your PPF account.

The biggest benefit to all PPF account holders is that the balance amount in PPF account is not subject to attachment under any order or decree of court in respect of any debt or liability. Your retirement fund is fully secure in your PPF account.

Posted 5 years, 1 month ago by CA Pulkit Sharma

PPF is an account that everyone should have. It is a guaranteed retirement fund which cannot be touched by anyone before 15 years.

Best part is that Interest accrued is totally exempt. You also get 1.5 lakh Rs. deduction while filing your return.

Posted 5 years, 1 month ago by Rahul Rai

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