Changes in PPF: Big news for PPF investors, the government made these 5 changes, know otherwise there may be loss
Newz Fast, New Delhi: The interest rate of PPF is expected to increase in the quarter ending September. In the last few years, the government has changed its rules. Let us know about these changes.
Public Provident Fund ie PPF is a great option for a safe investment. You can start with low investment by opening a PPF account in a bank or post office.
There is a provision to deposit a minimum of Rs 500 annually and a maximum of Rs 1.5 lakh. At present, the interest rate on PPF is 7.10 percent.
The interest rate of PPF is expected to increase in the quarter ending September. In the last few years, the government has changed its rules. Let us know about these changes.
Money will be deposited only once in a month
The investment in the PPF account should be in multiples of Rs 50. This amount should be at least Rs 500 or more annually. You can deposit up to 1.5 lakhs in the PPF account during the entire financial year.
Only on this you get the benefit of tax exemption. Apart from this, money can be deposited in PPF account once in a month.
Reduction in loan interest rate
Loan can also be taken against the balance in the PPF account. This interest rate has been reduced from 2 percent to 1 percent in the last days.
After paying the principal amount of the loan, you will have to pay the interest in more than two installments. Interest is calculated on the first of every month.
Account will remain active even after maturity
After investing in PPF for 15 years, if you are not interested in investment, then you can continue with PPF account even without investment. It is not necessary to deposit money in this account after the completion of 15 years.
You can withdraw money only once in a financial year by opting to extend the PPF account after maturity.
Form A required to be filled
To open a PPF account, Form-1 has to be submitted instead of Form A. For extension of PPF account after 15 years (with deposits) one year before maturity, one has to apply in Form-4 instead of Form H.
Loan Against PPF Rules
The rule of taking loan against PPF account is that you can get a loan up to 25 percent of the total balance in your account two years before the date of application.
That is, you applied for the loan on 31 August 2022. Two years before this (31st August 2020), if you had 1 lakh rupees in your PPF, then you can get 25 percent of it i.e. up to 25 thousand rupees.