PPF Scheme 2019 : Overview of new Public Provident Fund (PPF) Scheme

PPF Scheme 2019 : Overview of new Public Provident Fund (PPF) Scheme The Union government has notified new Public Provident Fund (PPF) rules. The new rules called, Public Provident Fund Scheme 2019, have replaced all the previous PPF rules with immediate effect. Amount deposited in PPF accounts are eligible for tax deduction under Section 80C. Interest earned on deposits in the PPF account are tax free. This makes the PPF one of the most tax efficient investments in India. The key features of the new scheme have been enumerated below: Question 1 Who can Open PPF Account Indian citizens are eligible to open a PPF account. An individual can open only one account under his/her name. However, another account can be opened by the individual on behalf of a minor. Non-resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not allowed to open a PPF account. Question 2 How can I open the PPF Account PPF accounts can be opened at any nationalised bank, authorised bank and post offices. As per new EPF Scheme, one can open the account by submitting the Form 1 along with the relevant documents and minimum deposit of Rs. 500. Question 3 What are relevant Forms that are required to be filed at various stages of the PPF Account

Forms as per New PPF Scheme 2019
Account Opening Form	Form 1
Contribution Form	Not Specified
Partial withdrawals	Form 2
Account closure after maturity	Form 3
PPF Loan	Form 2
Extension Form	Form 4
Premature Closure	Form 5
Nomination	Form 1

Can I make Premature Closure of my PPF A/C Yes PPF Scheme 2019 allows premature closure of the PPF account on certain Grounds.

1. The account holder shall be allowed to prematurely close his account on or after the expiry of 5 years from the end of year in which the account was opened
2. Premature closure of the PPF account is allowed on grounds of serious ailments or life threatening diseases affecting the account holder, spouse, dependent children or parents.
3. Premature Closure is allowed on ground of Higher Education of Account Holder or dependent children. For this production of documents and fee bills in confirmation of admission in a recognized institute of higher education in India or abroad is mandatory.
4. As per the new scheme one can close the PPF A/C before maturity, due to change in residential status.

Some Facts about PPF Scheme 2019

• PPF Scheme 2019 allows deposits in multiples of Rs. 50.
• No upper limit on number of deposits has been specified. In other words you can make deposits to the PPF account as many times as you want, subject to the maximum limit of Rs. 1.5 Lakh.
• Their is requirement of minimum annual contribution of Rs. 500.

Tax treatment of investment in PPF PPF deposits fall under the EEE (Exempt, Exempt, Exempt) tax category, which means an investor is not liable to pay tax at all three levels - investment, earning and withdrawal. Investment made in PPF Scheme is eligible for deduction under Section 80C of the Income-tax Act. Any amount withdrawn from the account is exempt from tax under Section 10(11). Click Here to Buy CA INTER/IPCC Pendrive Classes at Discounted Rate Tags : News, Income Tax, Provident Fund, Income Tax, Income Tax Deduction, Deduction from Gross Total Income For Regular Updates Join : https://t.me/Studycafe