Public Provident Fund.

• Only one account can be opened in the name of a person.

• Twelve deposits can be made in a financial year.

• Rate of Interest 8 % (tax Free)

• Minimum deposits in a year is INR.500 and maximum is INR. 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.

• Certificates are transferable from one person to another person before maturity.

• Deposits completely exempted from wealth tax. Interest is completely tax free under section 80 of IncomeTax Act