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#2
15th November 2017, 12:05 PM
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| Re: State Bank of India PPF Calculator
The Public Provident Fund Scheme of State Bank of India is introduced by the National Savings Organization in 1968 to mobilize small savings. The Scheme offers an investment avenue with decent returns coupled with income tax benefits. Eligibility Individuals in their own name as well as on behalf of a minor can open the account at any Branch. As per extant instructions, opening of PPF accounts in the name of Hindu Undivided Family is not permitted. SBI PPF Account Features and Benefits Nomination Facility The scheme offers nomination facility to customers. This nomination can be made in terms of the number of PPF shares too. Tax benefits applicable on SBI PPF scheme The scheme offers the most amazing tax benefits that any investment scheme has. The interest earned is totally exempt from income tax under section 88 of the Income Tax Act. The outstanding PPF amount is also fully exempt from wealth tax payment. These tax benefits make PPF saving scheme one of the most lucrative savings tool. Loans and withdrawals against SBI PPF account Loans from SBI against SBI PPF accounts are permitted. Similarly, partial withdrawals also are allowed on SBI PPF accounts. However, loan amount and amount of partial withdrawal is subject to the age of the PPF account and to the PPF balance on any given date. Loans and withdrawals are basically under sole discretion of the bank. Transfer of SBI PPF Account The SBI PPF account is transferred to any other bank or any other SBI branch or even to post office PPF upon transfer request by customer. This transfer of PPF account is totally free of any service charge. Rate of Interest The Rate of Interest determined by Central Govt. on quarterly basis. At present it is pegged at 7.90% per annum with effect from 01.04.2017. Interest is paid on 31st March every year. Interest is calculated on the minimum balance between 5th day and end of the month. State Bank of India PPF  |