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Only one account can be opened in the name of a person.
Twelve deposits can be made in a financial year.
Minimum deposits in a year is Rs.500
and maximum is Rs. 70,000/-.
Loan is admissible from the third year.
Loan amount is limited to 25 % of at the end
of two years preceding.
Fresh loan is not allowed when previous loan or interest
thereof is outstanding.
Interest is charged at the rate of 1% if prepaid within 36
months and at 6% on the outstanding loan after 36
months.
Withdrawal is permissible from seventh financial year from the
year of opening, limited to one in a
financial year.
Amount of withdrawal
is limited to 50 % of balance at the end of the fourth
preceding year
less amount of outstanding loan or 50% of balance at the end of immediate preceding
year of withdrawal less amount of
outstanding loan, if any whichever is less.
A subscriber can
close the account in the 16th financial year.
The account can also be continued with or
without subscription, for further blocks of 5 years.
Deposits are qualified for Income Tax rebate under section 88
of Income Tax Act.
Deposits completely exempted from wealth
tax. Interest is completely tax free under section 80 of IncomeTax Act.
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15
Years Public Provident Fund