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SBI's PPF Account Offers Tax Benefits Up To Rs 1,50,000. Ten Things To Know
02 Jun 2018, 08:00 PM IST 
One can operate the PPF account on SBI's net banking account also
- Anyone can open an SBI Public Provident Fund (PPF) Account account by submitting the following documents: PPF account opening form (form A), nomination form, passport size photograph, copy of PAN card or form 60/61, identity proof and residence proof as per the Reserve Bank's KYC (know your customer) norms.
- One can operate the PPF account on SBI's net banking account. On the net banking account, one can view the Public Provident Fund (PPF) Account balance, transfer funds from linked savings account online, and view the Public Provident Fund (PPF) account statement online in your SBI Net Banking Account.
- The subscribers can even issue the standing instructions for credits (of a fixed amount) on a regular basis to PPF account by debit to SBI's savings bank/ Current Account for PPF subscribers. Standing Instructions can also be given online for crediting PPF account on periodical basis through Internet banking.
- In case subscribers skip the minimum subscription of Rs 500 on the completion of the financial year, a penalty of Rs 50 will be levied per year of default.
- The PPF subscribers can even avail of the loan facility between third financial year to sixth financial year, that is, from third financial year upto end of fifth financial year.
- The PPF account holders can invest a minimum of Rs 500 in a year while they can invest up to Rs 1.5 lakh. Deposits can be made in lump-sum or in 12 instalments. The subscriber should not deposit more than Rs.1,50,000 per annum as the excess amount will neither earn any interest nor will be eligible for rebate under Income Tax Act.
- PPF contributions qualify for the EEE (exempt, exempt, exempt) tax category, which means an investor is not liable to pay tax at all three levels - investment, earning and withdrawal.
- The interest for a month on the PPF account is calculated on the minimum balance available in the account from fifth of a month to the last date of the month. So, if you deposit your money after the fifth day of the month, you stand to lose out on substantial interest income for that particular month.
- There is a provision of premature withdrawal so long as the amount is required for the treatment of serious ailments or life threatening diseases of the account holder, spouse or dependent children or parents. The permission of withdrawal can be granted on the production of supporting documents from competent medical authority.
- The PPF amount can also be withdrawn if the subscriber requires the amount for higher education of self/ or the minor account holder. However, to be able to do this, the subscriber must produce documents and fee bills in confirmation of admission in a recognized institute of higher education in India and abroad.