Ppf

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Rachana

Rachana (Querist)
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02 March 2012 What is the tenure of PPF a/c?
shall i withdraw any amount during the tenure in case of need?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 March 2012 Tenure of Investment:

15 years from the date of initial investment with a block of 5 years there-after upto a max of 30 years incl. 15 years.

Investment Limitation:

Min Amount :Rs. 500/-
Max Amount :Rs. 1,00,000/-

Returns:

Interest 8.6% p.a. (compounded annually), w.e.f. 01-Dec-2011, is credited to the PPF account at the end of each financial year.

Loans:

The first loan can be taken in the 3rd financial year from the date of opening of the account, or upto 25% of the amount at credit at the end of the first financial year. The facility can be availed of any before expiry of 5 years from the end of the year in which the initial subscription was made. The loan is repayable either in lumpsum or in convenient installments numbering not more than 36. 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:

A withdrawl is permissible every year from the 7th financial year of the date of opening of the account, of an amount not exceeding 50% of the balance at the end of the 4th proceeding year or the year immediately proceeding the year of the withdrawal, whichever is lower, less the amount of loan if any.

For more check out below link--

http://www.investmentkit.com/government/ppf.shtml