PPF Account In State Bank Of Patiala

I recently opened an account in the State Bank of Patiala and want details about the Public Provident Fund (PPF) Scheme. Will you please provide all details related to this along with eligibility and Rate of Interest and provide details about tax benefit in this PPF account?

[Kiran Chandar]

State Bank of Patiala, founded in 1917, is associate bank of the State Bank Group.

About Public Provident Fund (PPF)

This PPF Scheme introduced by Central Government in 1968.

The Scheme enables the members of the public to make contributions to the Fund and obtain Income Tax rebate under the relevant provisions of the Income Tax.

Eligibility

Individuals
Individuals on behalf of a minor

Minimum/Maximum Investment

Minimum Rs.500/- per annum in multiples of Rs.5/-
Maximum Rs. 1,50,000/- per financial year

Duration

15 years
Can be extended for one or more blocks of 5 years
Account can be discontinued but repayment of subscriptions along with interest only after 15 years.


Rate of Interest
8.1% (w.e.f. 01-04-2016) per annum credited in account on 31st March every year calculated on the minimum balance between 5th day and end of the month.

Loans
Loan upto 25% of balance at the end of first financial year from third to sixth year. Second loan can be taken on full payment of first loan.

Tax Benefits

Benefit available u/s 88 of the I.T. Act.
Interest totally exempt from Income Tax.
Amount standing to the credit is fully exempted from Wealth Tax.

Contact:

General Manager (Treasury, F & A)
State Bank of Patiala
Head Office,The Mall, Patiala – 147 001
Phone No. 0175-2395629
E-mail id. gmtry@sbp.co.in