THE PUBLIC PROVIDENT FUND SCHEME, 1968

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Presentation4

THE PUBLIC PROVIDENT FUND SCHEME, 1968

In exercise of powers conferred by section 3 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government hereby makes the following Scheme, namely :—

  1. Short title and commencement.—(1) This Scheme may be called the Public Provident Fund Scheme, 1968.

(2) It shall come into force on 1st July, 1968.

  1. Definitions.—In this Scheme unless the context otherwise requires,—

(a) “account” means a Public Provident Fund Account under this Scheme;

(b) “account office” means an office or branch of the State Bank of India, any subsidiary bank of the State Bank of India (excluding a pay-office, a sub-pay-office, or any other office managed by a single officer or clerk) and any other office authorised by the Central Government to receive subscriptions under the Scheme;

(c) “accounts officer” means the person who, for the time being, is in charge of an accounts office;

(d) “Act” means the Public Provident Fund Act, 1968 (23 of 1968);

(e) “Form” means a form appended to this Scheme;

(ee) “guardian”, in relation to a minor, means—

(i) father or mother ; and

(ii) where neither parent is alive, or where the only living parent is incapable of acting, a person entitled under the law for the time being in force to have care of the property of the minor;

(f) “year” means the financial year.

  1. Limits of subscription.—(1) Any individual may, on his behalf or on behalf of a minor of whom he is the guardian, subscribe to the Public Provident Fund (hereinafter referred to as the “Fund”) any amount not less than Rs. 500 and not more than Rs. 1,00,000 in a year.

(2) * * * * *

(3) Non-resident Indians (NRIs) are not eligible to open an account under the Public Provident Fund Scheme :

Provided that if a resident who subsequently becomes NRI during the currency of maturity period prescribed under Public Provident Fund Scheme, may continue to subscribe to the Fund till its maturity on a non-repatriation basis.

  1. Manner of making the subscription.—(1) Every individual desirous of subscribing to the Fund under this Scheme for the first time, either in his own behalf or on behalf of a minor of whom he is the guardian or on behalf of a Hindu undivided family of which he is a member or on behalf of an association of persons or a body of individuals as referred to in clause (g) of sub-section (2) of section 80C of the Income-tax Act, 1961 (43 of 1961), shall apply to the accounts office in Form A, or as near thereto as possible, together with the amount of initial subscription, which shall be in integral multiples of Rs. 5.

(2) On receipt of an application under sub-paragraph (1), the accounts office shall open an account in the name of the subscriber and issue a pass book to him, wherein all amounts of deposits, withdrawals, loans and repayment thereof together with interest due shall be entered over the signature of the accounts officer with the date stamp.

(3) The subscriber shall deposit his subscription with the accounts office with a challan in Form B, or as near thereto as possible. The counterfoils of the challan shall be returned to the depositor by the accounts office, duly evidenced by receipt. In the case of deposits made by cheque or draft or postal order, the account office may issue a paper token to the depositor pending realisation of the proceeds.

(4) Every subscription shall be made in cash or by crossed cheque or draft or pay order in favour of the Accounts Office at the palce at which that office is situated.

(5) Where a deposit is made by means of an outstation cheque or instrument, collection charges at the prescribed rate shall be payable alongwith the deposit and the date of realisation of the amount shall be the date of deposit.

  1. Number of subscriptions.—The subscriptions, which shall be in multiples of Rs. 5, may, for any year, be paid into account in one lump sum or in instalments not exceeding twelve in a year.
  2. Transfer of accounts.—A subscriber may apply for transfer of his account from one accounts office to another accounts office.
  3. Issue of duplicate pass book, etc.—(1) In the event of loss or destruction of a pass book issued by an accounts office, the office may, on an application made to it in this behalf, and on payment of rupee one by the subscriber, issue a duplicate thereof to him.

(2) A subscriber who fails to subscribe in any year according to the limits specified in paragraph 3, may approach the accounts office for condonation of the default, on payment, for each year of default, a fee of Rs. 50 along with arrear subscription of Rs. 500 for each such year.

  1. Interest.—Interest at the rate, notified by the Central Government in the Official Gazette from time to time, shall be allowed for each calendar month on the lowest balance at credit of an account between the close of the fifth day and the end of the month and shall be credited to the account at the end of each year:

Provided that where the interest to be credited contains a part of a rupee, then, if such part is fifty paise or more, it shall be increased to one complete rupee, and if such part is less than fifty paise, it shall be ignored.

[Subscriptions made to the fund on or after 15th day of January, 2000, and balances at the credit of the subscriber shall bear interest at the rate of eleven per cent per annum :

Provided that the rate of interest applicable on the subscriptions made to the fund on or after the 1st April, 1999, and before 15th January, 2000, and balances at the credit of the subscriber shall bear interest at the rate of twelve per cent per annum.—See Notification S.O. No. 48(E), dt. 15th Jan., 2000—Ed.] [Subscriptions made to the fund on or after the 1st of March, 2001 but before the 1st day of March, 2002, and balances at the credit of the subscriber shall bear interest at the rate of nine-and-a-half per cent per annum the subscriptions made to the Fund on or after the 1st day of March, 2002 and balances at the credit of the subscriber shall bear interest at the rate of nine per cent per annum as per Notification No. S.O. 271(E), dt. 1st March, 2002—Ed.] [The Central Government has notified that the subscriptions made to the fund on or after the 1st day of December, 2011 and balances at the credit of the subscriber shall bear interest at the rate of 8.6 per cent per annum as per Notification [F. No. 1/9/2011-NS.(II), dt. 25th Nov., 2011—Ed.]

  1. Withdrawal from the Fund.—(1) Any time after the expiry of five years from the end of the year in which the initial subscription was made, a subscriber may, if he so desires, apply in Form C, or as near thereto as possible, together with his pass book to the accounts office, for withdrawing from the balance to his credit an amount not exceeding fifty per cent of the amount that stood to his credit at the end of the fourth year immediately preceeding the year of withdrawal or at the end of the preceding year, whichever is lower, less the amount of loan, if any, drawn by him under paragraph 10 and which remains to be repaid:

Provided that not more than one withdrawal shall be permissible during any one year.

(2) On receipt of an application under sub-paragraph (1), the accounts office may, after satisfying itself that the amount of withdrawals applied for is not in excess of the limit prescribed in sub-paragraph (1) and that the applicant has, till the date of application, been subscribing according to the limit specified in paragraph 3, subject to the provisions of sub-paragraph (4), permit the withdrawal and enter the amount withdrawn in the pass book.

(3) Notwithstanding the provisions of sub-paragraph (1), any time after the expiry of 15 years from the end of the year in which the initial subscription was made by him, a subscriber may, if he so desires, apply in Form C or as near thereto as possible together with his pass book to the accounts office for the withdrawal of the entire balance standing to his credit and the accounts office, on receipt of such an application from the subscriber, shall subject to the provisions of sub-paragraph (4) allow the withdrawal of the entire balance (together with interest upto the last day of the month preceding the month in which the application for withdrawal is made) after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him and close his accounts :

Provided that a subscriber may, if he so desires, make withdrawal of the amount standing to his credit, from time to time, in instalments not exceeding one in a year.

*[Provided further that an account opened on behalf of a Hindu undivided family prior to the 13th day of May, 2005, shall be closed after expiry of fifteen years from the end of the year in which the initial subscription was made and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him. In the case of accounts opened on behalf of Hindu undivided family, where fifteen years from end of the year in which initial subscription was made, has already been completed, they shall also be closed at the end of the current year, i.e., the 31st day of March, 2011 and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him.]

*Ins. by Public Provident Fund (Amendment) Scheme, 2010, vide Notification No. GSR 956(E), dt. 7-12-2010 (w.e.f. 7-12-2010).

(3A) Subject to the provisions of sub-paragraph (3), a subscriber may, on the expiry of 15 days from the end of the year in which the initial subscription was made but before the expiry of one year thereafter, exercise an option with the accounts office in Form H, or as near thereto as possible, that he would continue to subscribe for a further block period of 5 years according to the limits of subscriptions specified in paragraph 3.

(3B) In the event of a subscriber opting to subscribe for the aforesaid block period, he shall be eligible to make partial withdrawals not exceeding one every year by applying to the accounts office in Form C, or as near thereto as possible, subject to the condition that the total of the withdrawals, during the 5 year block period, shall not exceed 60 per cent of the balance at his credit at the commencement of the said period.

Note : A subscriber may at his option (to be exercised before the expiry of the first year of every extended block period) avail of his facility for a further block of 5 years on expiry of 20 years or on expiry of 25 years and so on, from the end of the year in which the initial subscription was made.

(4) Where the application is made by a person who had made subscription to the Fund on behalf of a minor of whom he is the guardian, he shall furnish a certificate in the following form, namely :

“Certified that the amount sought to be withdrawn is required for the use of ……….., who is alive and is still a minor.”

  1. Loan.—(1) Notwithstanding the provisions of paragraph 9, any time after the expiry of one year from the end of the year in which the initial subscription was made but before the expiry of five years from the end of the year in which the initial subscription was made, a subscriber may, if he so desires, apply in Form D, or as near thereto as possible, together with his pass book, to the accounts office for obtaining a loan consisting of sum of whole rupees not exceeding twenty-five per cent of the amount that stood to his credit at the end of the second year immediately preceding in the year in which the loan is applied for.

(2) On receipt of an application under sub-paragraph (1), the accounts office may, after satisfying that the amount of loan applied for is not in excess of the limit prescribed in sub-paragraph (1) and the applicant has, till the date of application, been subscribing according to the limit specified in paragraph 3, subject to the provisions to sub-paragraph (3), sanction the loan and enter the amount in the pass book.

(3) Where the application is made by a person who has made subscriptions to the fund on behalf of a minor of whom he is the guardian, he shall furnish a certificate in the following form, namely :

“Certified that the amount for which loan is applied for is required for the use of……….., who is alive and is still a minor.”

(4) A subscriber shall not be entitled to get a fresh loan so long as an earlier loan has not been repaid in full together with interest thereon.

  1. Repayment of loan and interest.—(1) The principal amount of a loan under the Scheme shall be paid by the subscriber before the expiry of thirty-six months from the day of the month following the month in which the loan is sanctioned. The repayment may be made either in one lump sum or in two or more monthly instalments within the prescribed period of thirty-six months. The repayment will be credited to the subscriber’s account.

(2) After the principal of the loan is fully repaid, the subscriber shall pay interest thereon in not more than two monthly instalments at the rate of two per cent, per annum of the principal for the period commencing from the first day of the month following the month in which the loan is drawn upto the last day of the month in which the last instalment of the loan is repaid :

Provided that where the loan is not repaid or is repaid only in part within the prescribed period of thirty-six months, interest on the amount of loan outstanding shall be charged at six per cent per annum instead of at one per cent per annum from the first day of the month following the month in which the loan was obtained to the last day of the month in which the loan is finally repaid.

(3) The interest on the amount of loan outstanding under the proviso to sub-paragraph (2) and any portion of interest payable but not paid, on any loan, the principal amount of which has already been repaid within the prescribed period of thirty-six months, may, on becoming due, be debited to the subscriber’s account.

(4) The interest recoverable shall accrue to the Central Government.

  1. Nomination and repayment after death of subscriber.—(1) A subscriber to the Fund may nominate in Form E, or as near thereto as possible, one or more persons to receive the amount standing to his credit in the event of his death before the amount has become payable or, having become payable, has not been paid.

(2) No nomination shall be made in respect of an account opened on behalf of a minor.

(3) A nomination made by a subscriber may be cancelled or varied by a fresh nomination in Form F, or as near thereto as possible, by giving notice in writing to the accounts office in which the account stands.

(4) Every nomination and every cancellation or variation thereof shall be registered in the accounts office and shall be effective from the date of such registration, the particulars of which shall be entered in the pass book.

(5) If any nominee is a minor, the subscriber may appoint any person to receive the amount due under the account in the event of the death of the subscriber during the minority of the nominee.

(6) Notwithstanding the provisions contained in paragraph 9,—

(i) if a subscriber to an account in respect of which a nomination is in force dies, the nominee or nominees may make an application in Form G, or as near thereto as possible, to the accounts office together with proof of death of the subscriber and on receipt of such application all amounts standing to the credit of the subscriber after making adjustments, if any, in respect of interest on loans taken by the subscriber, shall be repaid by the accounts office itself to the nominee or nominees :

Provided that if any nominee is dead the surviving nominee or nominees shall, in addition to the proof of death of the subscriber, also furnish proof of death of the deceased nominee;

(ii) where there is no nomination in force at the time of death of the subscriber, the amount standing to the credit of the deceased after making adjustments, if any, in respect of interest on loans taken by the subscriber, shall be repaid by the accounts office only to the legal heirs of the deceased on receipt of an application in Form G in this behalf from them:

Provided that the balance upto Rs. 1 lakh may be paid to the legal heirs on production of (i) a letter of indemnity; (ii) an affidavit; (iii) a letter of disclaimer on affidavit; and (iv) a certificate of death of subscriber, on stamped papers, in the forms as in Annex. to Form G.

(7) A subscriber to the Fund cannot nominate a trust as his nominee.

“FORM A

[See Sub-paragraph (1) of paragraph 4]

Serial No…………………..

Application for opening a public provident fund account under the Public Provident Fund Scheme, 1968

To

The Branch Manager/Postmaster

………………………………….(Name of the bank/post office)

Paste here a copy of recent passport size photograph

 

PAN No…………………………………………**

I…………………………………..hereby apply for opening an account under the Public Provident Fund Scheme, 1968, in my name/in the name of Kumar/Kumari…………………..of whom I am the guardian and tender herewith Rs. ……………………………………(Rupees……………………..) in cash/cheque as the initial subscription.

Permanent address of subscriber/guardian………………………………..

I agree to abide by the provisions of the Public Provident Fund Scheme, 1968, and amendments issued thereto from time to time.

Account in the name of self/minor(s)

Date of birth of minor……………………………………………………

Applicant’s relationship with minor, if any……………………………………

(i) I hereby declare that I am not maintaining any other public provident fund account.

(ii) I hereby declare that I am not maintaining any other public provident fund account, except an account on behalf of a minor.

(iii) I hereby declare that the details of other public provident fund accounts opened earlier by me are as under :

 

Sl. No. Description Name/address of the bank/post office and account No.
1. Self account
2. In the name of minor(s) of whom I am the guardian

 

(iv) I also declare that I shall adhere to the ceiling on deposits as provided for by Central Government from time to time, which is Rs. 1,00,000 in a financial year at present, in each of the following types of Public Provident Fund Account :—

(a) Individual Self-Account and Account(s) on behalf of minor(s) of whom I am the guardian, taken all the accounts together;

In case, at any time the said declaration is found untrue/false, no interest shall be payable to me/the subscriber on the amount of deposits found in excess of the prescribed limit.

(v) I shall be utilising the services of Shri/Ms………………………….., PPF Agency No………………………., who has canvassed for opening of this PPF account, or

 

I shall be investing directly and not through any agent.

 

Date………………………..

Signature or thumb impression

of subscriber/guardian

Additional specimen signatures

…………………………………………

**The subscriber/applicant who are not assessed to income-tax or do not have PAN/GIR No. may furnish attested copy of the ration card or voter’s identity card or passport for identification.

Note 1 : * * * * *

Note 2 : Delete whichever is not applicable.

For the use of accounts office

The account has been opened on…………………………………with Rs…………………………….under Public Provident Funds Account No…………………………..

Pass book No…………………………………..has been issued.

 

Date……………………………..

Accounts Officer”.

 

 

FORM B

[See sub-para (3) of para 4]
Name of Agent…………. Paper Token No…………

Code No……………….

PUBLIC PROVIDENT FUND SCHEME, 1968

Challan for deposit of money into Government Account ……………………………………………………………………………

[Name of Accounts Office]
Account No……………………. Date…………………..
Name of Subscriber…………. Ledger Folio……………….
Address………………………….
Cash Amount Rs. Amount (In figures) Head of Govt. a/c.
100x
50x
20x
10x
5x
Subscription Loan repayment ‘806-Public Provident Fund’
*Cheque/Draft/ Postal Order Interest on loan fee ‘049—Interest Receipts—Other Receipts’
Total Total

 

*Bank/P.O. on which drawn…………………….. Number……………………
Rupees (in words)…………………………………… By……………………………
(Depositor’s signature)

 

Cashier’ Scroll No………………… Transfer Scroll No…….
Scroll Clerk……………….
Cashier…………………..

 

Head Cashier……………………….M.T. No………………..Accounts Officer ……………………

Note 1 : The cheque/draft should be in favour of the Accounts Office. The PPF Account No. should be indicated in brackets thereafter to ensure quick and proper adjustment.

Note 2 : In the case of deposits made by cheque/draft/postal order, the counterfoils of the challan will be returned by the Accounts Office to the depositor on realisation of the proceeds.

COUNTER FOIL (1) COUNTER FOIL (2)
Subscriber’s copy Agent’s copy
Name of Agent
Code No.
PUBLIC PROVIDENT FUND SCHEME, 1968 PUBLIC PROVIDENT FUND SCHEME, 1968
………………………………………. ……………………………………..
(Name of Accounts Office) (Name of Accounts Office)
Date Date
Ledger Folio Ledger Folio
Account No. Account No.
Name of Subscriber Name of Subscriber
Amount deposited Amount deposited
(Cash/Cheque) (Cash/Cheque)
Rs. Rs.
Subscription Subscription
Loan repayment Loan repayment
Fee………………… Fee……………………
Total……………… Total………………….
Rupees (In words) Rupees (In words)

 

 

For Deposit Office For Deposit Office
Amount in figures Amount in figures
Cashier’s Scroll No. Cashier’s Scroll No.
Date Stamp of deposit office Date stamp of deposit office
Cashier Cashier
Head Cashier/Accounts Officer Head Cashier/Accounts Officer

N.B.—This counterfoil may be scored by subscribers not utilising the services of an agent.

 

FORM C

[See sub-paras (1) and (3) of para 9]

STATE BANK OF…………………………..

APPLICATION FORM FOR WITHDRAWALS UNDER THE PUBLIC PROVIDENT FUND SCHEME, 1968

To

The Agent/Manager,

State Bank of……………………………….

………………………………………………….

  1. I wish to withdraw from Public Provident Fund Account No………………….a sum of Rs…………………….(Rupees…………………………………………………………………..). A period of…………………………..years has expired from the end of the year in which the initial subscription was made.

1A. I have not made any withdrawal in the current year.

  1. Certified, that the amount sought to be withdrawn is required for the use of………………who is alive and is still a minor.
  2. The Pass Book is enclosed.
Date………………… ……………………………………………
Signature or thumb impression of
subscriber/guardian

*Score out whichever is not applicable

 

TO BE USED BY THE ACCOUNTS OFFICE

A/c No…………………….

Date of initial subscription……………………………………………

Amount available in the Public Provident Fund Account……………………………………….

Date on which last withdrawal was allowed……………………

Amount available for withdrawal in accordance with para 9(1)/9(3) of the Scheme………………………………………………………………………..

Withdrawal of a sum of Rs………………………………………………..sanctioned.

Date………………. ……………………………………….
Signature of Accounts Officer

Received a sum of Rs……………………….(Rupees………………………………………….) by way of withdrawal from Public Provident Fund Account No…………..

Date…………….. STAMP ……………………………….
Signature/thumb impression of
subscriber/guardian

 

FORM D

[See para 10]

APPLICATION FOR A LOAN UNDER THE PUBLIC PROVIDENT FUND SCHEME, 1968

To

…………………………………….

Sir

  1. I wish to take a loan from Public Provident Fund Account No…………….of a sum of Rs………………….(Rupees……………………………………………………………………………………) which I undertake to repay with interest within the period of twenty-four months as prescribed in paragraph 11 of the Public Provident Fund Scheme, 1968.
  2. I had taken a loan of Rs…………………………..(Rupees………………………………..) on………………………… which has been repaid in full with interest on………………………
[date]

*3. Certified that the amount for which loan is applied for is required for the use of…………………………….who is alive and is still a minor.

  1. The Pass Book is enclosed.
Date……………….. ……………………………………………….
Signature or thumb impression of
subscriber/guardian

*To be given only when a loan is sought from a minor’s account

 

TO BE USED BY THE ACCOUNTS OFFICE

Date of initial subscription…………………………………………………………………..

Amount available to the Public Provident Fund Account………………………………………

Amount available for loan in accordance with para 10 of the PPF Scheme……………………..

Amount of loan actually sanctioned……………………………………………………………………

Date…………………… ………………………………………….
Signature of Accounts Officer

Received a sum of Rs……………………….(Rupees………………………………………………..) by way of loan from Public Provident Fund Account No………………..

Date………………….. STAMP
……………………………………………
Signature/thumb impression of
subscriber/guardian

******************************************************

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