How to open ICICI Bank PPF account online? Get Step by Step process
Tax saving season is here, if you are still planning to open a Public Provident Fund (PPF) to save tax, you can open it online by following a few simple steps. The PPF due to the benefits of tax savings, returns, and safety, the program has now become one of the most popular long-term savings schemes. It provides a competitive interest rate as well as tax breaks on deposits, interest, and withdrawals.PPF account: Nine important Public Provident Fund account rules and benefits
PPF details
PPF deposits are tax deductible under Section 80C of the Income Tax Act. The government determines the scheme's interest rate quarterly. It is now 7.1% each year.
PPFs have a 15-year maturity and the option to prolong the tenure, thus investors use them as a vehicle to create a corpus for their retirement by contributing large amounts of money on a monthly basis over extended periods of time. The PPF is a popular choice for small savers due to its alluring interest rates and tax advantages.
How to open PPF online in ICICI Bank online
Step 1: Login to your ICICI Bank account via netbanking.Step 2: Go to Bank Accounts >> PPF Accounts.
Step 3: Keep your Aadhar card handy.
Step 4: Fill in the details, set up standing instructions. and E-Sign.
PPF Account created! Funds will be debited. from your ICICI Bank savings account.
PPF accounts can be viewed online post 24 hours from the time of account opening. A standing instruction can be set for 15 years or till the maturity of PPF account.
Premature closure
In certain circumstances, an account holder can request the early closure of their account or the account of a juvenile or person of unsound mind over whom they are legal guardian using Form 5A.
According to the Bank of India website, below are the conditions when an account holder can request for premature closure.
Treatment of life threatening disease of the account holder, his/her spouse or dependent children or parents, on production of supporting documents and medical reports confirming such disease from treating medical authority.Higher education of the account holder, or dependent children on production of documents and fee bills in confirmation of admission in a recognized institute of higher education in India or abroad.On change in residency status of the account holder on production of copy of Passport and visa or Income- tax return (the rule shall not apply for the PPF account opened before 12th December 2019).
It is stipulated that an account opened under this scheme cannot be closed until five years have passed from the end of the year the account was opened.
Contributions
As per the rules, a minimum contribution of Rs 500 per year and maximum of Rs 1.5 lakh per annum is allowed. The limit of Rs 1.5 lakh is applicable on all accounts either held under his/her own name or on behalf of a minor. You either make lump sum or monthly contributions, but it cannot exceed 12 in a financial year.
Click here for FY 2023-24 tax-saving guide
Number of contributions
As the lock-in period of the scheme starts from the end of the financial year in which the deposit was made, if you make an annual contribution you make a total of 16, and not 15, contributions during the tenure of the scheme.
Discontinued accounts
If you discontinue your account, then you will not be eligible for loans and withdrawals until the account is revived by making a payment of penalty fees and minimum contributions. However, the account will be eligible to receive interest as per the prevailing rate.
Also read: PPF taxation: Why the Public Provident Fund is a safe option to save tax; 5 things to know
Nomination
Nomination facility is available. A person can nominate a minor in his/her account. However, no nomination is allowed in respect of an account opened on behalf of the minor.
Transfer
A person has the option to transfer his/her post office PPF account from post office to banks (authorised by the government) or vice versa. Similarly, you can transfer your PPF account from one bank branch to another or to other banks as well.
Exemption from wealth tax
PPF accounts are exempted from the ambit of wealth tax.
Connect with Experts - Wealth creation made easy
This story originally appeared on: India Times - Author:Faqs of Insurances
