The Public Provident Fund (PPF) is a popular savings-cum-tax-saving instrument in India, backed by the government. Here are the key details about PPF for 2024:

Eligibility

1. Individual Residents: Only individual residents of India can open a PPF account. Non-Resident Indians (NRIs) are not eligible to open new PPF accounts, although existing accounts can be maintained until maturity.

2. Minors: PPF accounts can be opened on behalf of minors by their parents or guardians.

3. Joint Accounts: Not permitted. Each individual can hold only one PPF account in their name, except for an account opened on behalf of a minor.

4. Hindu Undivided Family (HUF): HUFs are not allowed to open PPF accounts.

Tax Benefits

1. Contributions: Investments in PPF qualify for tax deductions under Section 80C of the Income Tax Act, up to a maximum limit of INR 1.5 lakh per financial year.

2. Interest Earned: The interest earned on the PPF account is completely tax-free.

3. Maturity Amount: The amount received on maturity, including the principal and the interest, is exempt from tax.

Interest Rate

The PPF interest rate is determined by the government and is subject to change every quarter. As of 2024, the interest rate is 7.1% per annum, compounded annually. This rate is subject to review and may be updated by the Ministry of Finance periodically.

Key Features

1. Tenure: The PPF has a tenure of 15 years. It can be extended in blocks of 5 years after the completion of the initial tenure.

2. Minimum and Maximum Investment: The minimum deposit amount is INR 500 per financial year, and the maximum is INR 1.5 lakh per financial year.

3. Frequency of Deposits: Deposits can be made in lump sum or in installments (not exceeding 12 per financial year).

4. Loan Facility: Loans can be availed against the PPF balance from the 3rd financial year up to the 6th financial year.

5. Partial Withdrawals: Partial withdrawals are allowed from the 7th financial year onwards.

6. Premature Closure: Premature closure of the PPF account is allowed under certain conditions such as for higher education or medical treatment, after the account has completed 5 financial years.

Application Process

1. Where to Open: PPF accounts can be opened at any designated post office or authorized banks.

2. Documents Required: KYC documents like identity proof, address proof, and PAN card along with passport-sized photographs are required.

3. Online Access: Many banks offer online facilities to open and manage PPF accounts.