Page 92 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Unit 5: Investment Vehicles

Where available? Notes
Available for purchase/issue at Post Offices.
Maturity Amount/Period
With effect from 1st March, 2003, invested amount doubles on maturity after Eight Years and
Seven months.
Nomination
Nomination facility is available.

Denomination/Deposit limits
Certificates are available in denominations (face value) of ` 100, ` 500, ` 1000, ` 5000,
` 10,000 & ` 50,000.

There is no maximum limit for purchase of the certificates.
Tax Benefits
No income tax benefit is available under the scheme. However the deposits are exempt
from Tax Deduction at Source (TDS) at the time of withdrawal.
Premature Encashment
Premature encashment of the certificate is not permissible except at a discount in the case
of death of the holder(s), forfeiture by a pledgee and when ordered by a court of law.
Place of Encashment/Discharge on Maturity
Can be encashed/discharged at the post office where it is registered or any other post
office.
6. Public Provident Fund Scheme
Who can open account under the scheme?
(i) An individual: in his own name, on behalf of a minor of whom he is a guardian,

(ii) a Hindu Undivided Family.
Where to open an account?
(i) at designated post offices throughout the country and
(ii) at designated branches of Public Sector Banks throughout the country.

Maturity Period
(i) The account matures for closure after 15 years.
(ii) Account can be continued with or without subscriptions after maturity for block
periods of five years.
Nomination
Nomination facility is available.
Deposit Limits

(i) Minimum deposit required is ` 500 in a financial year.
(ii) Maximum deposit limit is ` 70,000 in a financial year.
(iii) Maximum number of deposits is twelve in a financial year.

LOVELY PROFESSIONAL UNIVERSITY 87