SOCIAL SECURITY

Every modern society needs social security. It is the backbone of a society, without it peoples leaving in society cannot live with dignity and pride.

In India there are many social security schemes for Government employees and peoples working in big Industries. General peoples other than these are not covered under normal social security schemes.

In 1968 the Parliament of India enacted the Public Provident Fund Act. The Act is amended many times to make it more people friendly and to provide them good social security. Under this Act The Public Provident Fund Scheme is made by the Government of India.

Under this scheme any individual can open a public provident fund account in any nationalized bank or post office. One can subscribe to this scheme through PPF Agents also. Karta of Hindu undivided family can also open this account. The members of General Provident Fund or Employees Provident Fund can also open this account. An individual under this scheme can open only one account. One can deposit minimum rupees hundred and maximum rupees sixty thousand in one year in his/her account.

The money in account earns interests as fixed by the Central Government.

This account cannot be closed before fifteen years. A person can subscribe /remain member of this fund for full life. Withdrawals are permitted after five years. One can subscribe to this account after fifteen years in blocks of five years.

Interests earns from this scheme is fully exempted from Income Tax. The money in this account is not liable to attach any degree or order of any court in respect of any debt or liability of account holder. Loans can also be granted on amount in account in this scheme.

As the account can be maintained for whole life (even after stopping depositing in this account). One can use this account as its pension account by interest earnings from this account one can even withdraw principal amount from it. Income Tax exemption and protection against attachment makes it a safer account. Nomination facility is also available in this scheme.

Click here for PUBLIC PROVIDENT FUND ACT, 1968

Click here for PUBLIC PROVIDENT FUND SCHEME, 1968