Public Provident Fund is one of the favourite tax savings tool. This is an ideal tool for salaried as well as for self employed people. Under this investment upto to Rs 1,00,000 per annum qualifies for IT Rebate under section 80 C of IT Act.
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There is still a misconception that opening PPF account is a tedious job and many assume that it can be opened only at Post Offices. SBI is the most preferred bank due to its availability across India.
Selection of branch:
Choose a suitable branch which offers this facility. As this facility is available in selected branches of SBI. However, one need not have a SBI account in the same branch.
Visit SBI branch with required documents which needs to be submitted along with SBI PPF account opening form.
Now you have to submit anyone address proof, identity proof and two passport size photo along with the form.
The documents which can be submitted as Identity proof are:-
1) Pan Card
2) Driving license
3) Voters Id card
The documents which can be submitted as address proof are:-
1) Telephone Bill
2) Ration card
3) Electricity bill
4. Voters Id card
However, make sure you carry original documents along with self attested photocopies.
Issuance of passbook
Once your documents are verified, a pay-in slip should be filled along with minimum deposit amount.
The bank will issue passbook which will be very similar as SBI passbook, where you can keep a track of your transaction.
SBI also offers online PPF transaction where deposits can be made without much hassle. This facility can be availed by registering with SBI. Funds can be easily transferred from savings account to PPF account. You can also issue standing instruction from your account for auto-credit to PPF account.
* Only 12 credit transaction are allowed in a year. So, be carefull when you opt for a standing instruction.
Other facilities by SBI
- Nomination can be made in the name of one or more persons.
- Transfer of account can be done at the request of the subscriber with free of charge toany branch of State Bank of India or its Associates to Head Post Office or vice versa.
- Premature closure is considered only on grounds of genuine hardship, but only after the expiry of five years from the end of the year in which the account was opened.
- The subscriber may discontinue his account anytime after joining the fund. However, the repayment of the subscription with interest will be made only after 15 years form the end of the financial year in which the account was opened.
- Discontinued account can be revived on payment of Rs.50/- per year along with arrears of subscription of Rs.500/- per.