Public Provident Fund (PPF), as you may know is a form of (safe) investment controlled by the Government of India. Money put into any PPF account earns a steady interest rate of 8% per annum (although this may change). Although that interest rate is nice, it is the income tax exemption that attracts most people. All the interest earned through PPF and amount put in to PPF is completely exempted from Income Tax and Wealth tax. For other benefits, you may see our earlier post, PPF in SBI.
Apart from SBI and its Associate Banks’, PPF can also be opened in various Post Offices in India. And if you like, you have the flexibility to transfer your PPF account to SBI (from Post Office) any time in the future as you like. Per year, you can only invest Rs.70000 for a maximum period of 15 years. Although this period can be extended by another blocks of 5 years.
You need various application forms to open this PPF account in Post Office. You can either obtain these from Post Offices’ it self or download them from here.
Download PPF Account opening form (For opening an account)
Download PPF Account Deposit form (To deposit money in your PPF account, also called Challan form)
Download PPF Account Nomination form (To Add a nomination to your account)
Note: If you wish, you may change the Nomination later using the Nomination change form.