One of the most efficient savings schemes offered by Bank of India is the PPF scheme which was introduced by the Government of India in the year 1968 and is backed by the National Savings Institute of the Ministry of Finance. The main aim of the inception PPF was to cultivate the habit of savings among the citizens to help them in creating a sufficient corpus fund that will be of great help after their retirement. The Bank of India PPF account is also often used as a tax savings tool by the public.
A public provident fund (PPF) account is an investment scheme that offers income tax deduction u/s 80C for the invested amount (subject to a limit of Rs 1.5 lakh a year). Furthermore, The interest earned is exempt from tax and there is no tax on the amount received on maturity of the account either. Owing to the tax benefits offered, many people prefer to open a PPF account with their bank/post office to create a sizeable corpus.
PPF accounts have a mandatory lock-in period of 15 years. Upon maturity, the investor has the option of taking any one of the following steps:
1) Withdraw the maturity amount and close the account
2) Extend the account for a period of five years
Loans: A Bank of India PPF account holder can avail a loan against their PPF deposit account from the 4th to 6th year of its operation. The maximum loan that can be availed is up to 25% of the total amount at the end of the 2nd last financial year.
Premature withdrawals: BOI PPF account also allows premature withdrawal of the PPF account from the end of the fifth financial year from the date of account creation.
Tax benefits: Funds in the account and interest earned on that fund qualify for tax deductions under Section 80C of the Income Tax Act, 1961. Furthermore, deposits are also exempt from Wealth Tax.
Account deactivation and reactivation: If an account gets no deposits for a long time, it will be considered as deactivated but will not be closed. It can be revived with a minimum payment of Rs.500 and a penalty of Rs.50 for each defaulted year.
Opening a PPF account in the Bank of India through offline method is really hassle-free and can be done by following these easy steps:
The online PPF account opening in Bank of India Bank is only accessible by the existing customers of the bank. The depositor will have to physically visit the branch of the bank for submitting the required KYC documents and for the verification process in order to complete the process of opening the account.
The information on the procedure to open a PPF account online is given below.
One can open a BOI PPF account online by having access to the bank’s Net Banking facility.
You can deposit money in your PPF account in both online and offline methods:
Online: If you have an active BOI Net Banking, you can deposit, manage and view your account online.
Offline: You will have to fill out and submit Form B, which is a deposit slip. Once you get this form, you need to fill up the following details:
Once all these details are filled, submit them at the bank branch with the money.