PNB-Punjab National Bank: PNB says that if you worry about the future, do not panic at all, open a new account to get attractive interest and get tax-free returns.
PNB- Punjab National Bank, the country’s second largest state-run bank, says that PPF is one of the most popular investment and tax saving options. By investing in it, not only do you get tax exemption under Section 80C of the Income Tax Act, but the interest on it and the amount received at the time of maturity is also tax free. Let’s know all the things related to it…
What is PPF Scheme
This is a scheme run by the central government. You can take it according to your need. It is not mandatory to take it.
It is optional. If you want, you can open PPF accounts in any national bank or post office. For this, you do not even have to be an employee of a company.
PPF account interest rates are fixed every three months. From January 1, 2021 to March 31, 2021, PPF account will get 7.1 percent interest.
PPF account can be opened by going to any branch
You can open your PPF account by going to any branch of PNB. Now the bank is offering this facility in its app as well. PPF is one of the most popular investment and tax saving options.
By investing in it, not only do you get tax exemption under Section 80C of the Income Tax Act, but the interest on it and the amount received at the time of maturity is also tax free.
At least 500 rupees will have to be deposited annually in PPF account. In a financial year (April to March), you can put at least Rs 1.5 lakh. If you have opened accounts in the name of yourself and your child too, then the maximum investment will be only 1.5 lakh rupees including all the accounts.
Additional tax benefit in addition to PPF Additional tax benefits can be taken by opening a PPF account in the name of your spouse or child. According to tax laws, if the money given to the spouse is invested in the gift, the income from the investment is clubbed with the income of the payee.
Since income tax is free from PPF. So, this does not increase the tax liability of the contributor. Therefore, one can invest up to Rs 1.5 lakh in a year.
PNB account is mature in 15 years
PPF account matures in 15 years. When the account is matured, you have the option to withdraw the entire balance and close the account, or you can extend the account for 5 years with or without the contract.
How many times such an extension can be done in a block of five years. That is, there is no limit to it. But a period of 15 years does not mean that your money will be locked for so many days. A 15-year period begins with the opening of the account. The lock-in gradually decreases. In the 14th year it remains only one year.
If you opened a PPF account in 2006, then the lock-in period will end next year. But, even before maturity, in many cases it allows the withdrawal of money.
Can you withdraw money from PNB account in emergency?
Withdrawal can be done in case of emergency. After the sixth year, you can withdraw up to 50 percent of the remaining balance at the end of the fourth year.
You can take loan on PPF account
You can take a loan at the rate of 1 percent, if the account has not completed six years, then you can take a loan from three years to the sixth year. This loan can be taken up to 25% of the balance till the end of the last financial year.
This loan is available at 1 percent interest. It has to be paid within three years. Until the loan is repaid, the investor cannot take another loan.
It is necessary to deposit at least 500 rupees in a year
In any one year you can invest at least 500 rupees in PPF and more than 1.5 lakh rupees. In case of accounts which are extended beyond 15 years, minimum investment of Rs 500 has to be maintained.
If you do not make a minimum investment of Rs 500, then your account statement will become inactive. A penalty of 50 rupees has to be paid for such a dormant account to be activated again.
If you invest more than 1.5 lakh rupees in any one year, even if it has happened by mistake, you do not get any interest on the additional amount.
भविष्य की चिंता सताए तो बिल्कुल ना घबराएं। आकर्षक ब्याज प्राप्ति और टैक्स-फ्री रिटर्न पाने के लिए अपना #PPFAccount खुलवाएं।
अधिक जानकारी के लिए क्लिक करें: https://t.co/eVfpawgIv8 pic.twitter.com/m5blkNnfdY
— Punjab National Bank (@pnbindia) February 2, 2021
The compound interest is compounded annually on PPF. However, its calculation happens every month. Interest is available on the lowest balance from the 5th to the last date of the month.
If you invest before the 5th, then on the contract, you get interest for that month also. If you are investing through check, then make sure that you get your deposit 3-4 days before the cut-off date. If your bank is happy to put money in PPF account
The maximum limit of Rs 1.5 lakh includes the contribution of PPF account opened for minor children. This means that if the child opens a separate PPF account with him, more than Rs 1.5 lakh cannot be invested in both.
Interest is calculated before 5th of every month
There is an exemption of up to Rs 1.5 lakh under Section 80C on investment in PPF. There is no tax on the interest earned. But, it has to be told about the income tax return.
Withdrawal is also tax free. This does not affect the tax liability of the person. The amount withdrawn at maturity is also tax free.
