Page 93 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Personal Financial Planning

Notes Loans
Loans from the amount at credit in PPF account can be taken after completion of one year
from the end of the financial year of opening of the account and before completion of the
5th year. The amount of withdrawal cannot exceed 40% of the amount that stood to credit
at the end of fourth year preceding the year of withdrawal or at the end of preceding year
whichever is lower.
Withdrawal
Premature withdrawal is permissible every year after completion of 5 years from the
end of the year of opening the account.
Transferability
Account can be transferred from one post office to another post office, from a bank to
another bank; and from a bank to post office and vice-versa.
Pass Book
Depositor is provided with a pass book with entries of the deposited amounts, interest
credited every year and other particulars duly stamped by the post Office.
Interest
Interest at the rate, notified by the Central Government from time to time, is calculated an
credited to the accounts at the end of each financial year.

Income Tax relief
(i) Income Tax rebate is available ‘on the deposits made’, under Section 88 of Income
tax Act, as amended from time to time.

(ii) Interest credited every year is tax-free.
7. Deposit Scheme for Retiring Government Employees
Who can open an account?
(i) Retired Central and State Governments’ employees.
(ii) Retired Judges of the Supreme Court and High Courts.
Where to open an account?
At designated branches of Public Sector Banks throughout the country.
Maturity Period

(i) The account matures for closure after 3 years.
(ii) Account can be continued with the whole or a part of the deposits after maturity.
Nomination
(i) The account can be opened individually or jointly with his/her spouse.
(ii) Nomination facility is available in respect of individual accounts.
Deposit Limits
One time deposit with a minimum of ` 1000 to the maximum of the total retirement
benefits in multiple of one thousand rupees.
Retirement Benefits Means
(i) Balance at the credit of employee in any of the Government Provident Funds.
(ii) Retirement/Superannuation gratuity.

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