Revision of maximum limit of subscription in a financial year of PPF Account.
No. F.No. 1 1 3-01/201
1-SB
Governament of
lndia Ministrv of Communications & lT
Department of Posts
Dak Bhawan,
Sansad,Marg,
New Delhi-110001,
Dated: 21.08.2014
To
All Heads of
Circles/Regions
Addl. Director
General. APS. New Delhi.
Subject:- Revision
of maximum limit of subscription in a financial year of PPF Account.
Sir / Madam
The undersigned
is directed to convey the decision of the Min. of Finance (DEA.) for revision of existing
maximum limit of subscription in a financial year in the existing PPF accounts as
well as new PPF account io be opened on or after 13.08.2014, Now the subscription
in a financial year shall be Rs 1,50,000/- in place of Rs 1,00,000/- in PPF accounts.
The copy of Gazette Notification No. G.S.R. 588 (E) dated 13.08.2014 issued by MOF
(DEA) is enclosed.
2. It is
requested to circulate this instruction to all field units and ensure that the instruction is strictly followed.
3. This issues
with the approval of Competent Authority.
Encl.. as
above
Yours faithfully,
Sd.
(L.K.Sinha)
Assistant
Director General (FS-I)
MINISTRY OF FINANCE
(Department of
Economic Affairs)
NOTIFICATION
New Delhi, the 13th august, 2014
G.S.R.588 (E).
- In exercise of the powers conferred by sub-section (4) of Section 3 of the Public
Provident Fund Act, 1968 (23 of
1968), the Central Government hereby makes the following further amendments to the
Public Provident Fund Scheme, 1968, namely :-
1. (1) This
Scheme may be called the Public Provident Fund (Amendment) Scheme, 2014.
(2) it shall come into force from the date of its publication
in the Official Gazette.
2. In the Public
Provident Fund Scheme, 1968, -
(i) in paragraph 3, in sub-paragraph (1),
for the letters and figures "Rs.1,00,000", the letters and figures
"Rs. 1,50,000"
shall be substituted;
(ii) In Form-A, in paragraph.(iv), for
the letters and figures "Rs. 1,00,000", the letters and figures
"Rs. 1,50,000"
shall be substituted.
[F.No. 1/2/20 1
4-NS.iI]
DR. RAJAT BHARGAV.A.,
Jt. Secy.
---------------------------------
Public Provident Fund Account
- Ideal investment option for both salaried as well as self employed classes.
- Non-Resident Indians (NRIs) are not eligible.
- Investment up to INR. 1,50,000 per annum qualifies for IT Rebate under section 80 C of IT Act.
- The rate of interest on the subscriptions made to the fund on or after 01.12.2011 and balances at credit of the subscriber in the existing PPF account shall bear interest at the rate of eight point seven per cent (8.70%) per annum.
- Loan facility available from 3rd financial year upto 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011.
- Withdrawal permitted from 6th financial year.
- Free from court attachment.
- An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.
Type of Account
|
Minimum limit
|
Maximum limit
|
Public Provident Fund(Individual account on his behalf or on behalf of minor of whom he is the guardian) | INR. 500/- in a financial year | INR. 1,50,000/- in a financial year |
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