CA FINAL PRACTICE MANUAL for MAY 17

GROUP:1

1. Financial Reporting

2. SFM

3. AUDIT

GROUP:2

5. AMA

6. ISCA

7. DT

8. IDT

Recent Updates (Applicable for Nov. 16) by Satish Mangal Sir

Link to Download

ISCA Amendment For November 2016 part 1 (By Swapnil Patni Sir)

ISCA Amendment For November 2016 part 2 (By Swapnil Patni Sir)

CA Final Corporate & Allied Law Amendment Notes for November 2016 By Munish Bhandari

Link to Download

CA Final Nov. 16 Notes

1. SFM Formula Book:
    Direct Link to Download

2. Revsionary Notes on SA:
    Direct Link to Download

3. LAW Amendments:
    Direct Link to Download

4. Audit Amendments:
    Direct Link to Download

5. ISCA Ch. 1 Acronyms:
    Direct Link to Download

6. ISCA Ch. 4 Acronyms:
    Direct Link to Download

10 Golden Rules by a Chartered Accountant

A CA not only knows about Investments and Financials Statements but the rules of leading a great life too. A Chartered Accountant, on an average, goes through so many experiences of life while dealing with different situations. Hereunder are the ten best and universally applicable golden rules:

1. Live life full time:

Life is like a guitar; Tune. Play. Repeat. Give your best shot to life. Be passionate about the things you do. Life is like a Guitar. First you need to TUNE yourself, update yourself before you start something new or re-start something old with new style or method. Once you know ABC of it, PLAY it with your best efforts. Give your best shot. Once you achieve your target, take some rest, cherish the moment and then REPEAT.

2. Never Quit:

They are the victorious who dare not to give up. Never ever dare to give up. “You are the failure not the moment you are defeated, but the moment you give up fighting.” A student having passion for CA may fail once or twice or many a times in CA study course but the passion to get up again and appear for next attempt never dies. Because life after becoming CA changes.

3. Utilise time well:

Time spent for temporary happiness like movie or outing or weekend on a beach is all synthetic; with shelf life of a day or two. Work for your bigger dreams that should last for whole life. Then movie and beach would seem more interesting, realising that you have done something. 

Make a goal and start spending your value time in it. It’s not necessary that you should be earning from your hobby. First nurture your leisure time in the things you love doing or you always wanted to do but never got time. Be it painting or playing guitar or book writing. Once you get a taste of it, you won’t know when you would complete a milestone and you would be addicted to it. You shall cherish that moment.

4. Define your destiny:

Sometimes.. Life is like a vacuum cleaner. You know what it does. All you need to do is to kick the power plug and take the charge. Never give the charge of your life in the hands of others; you’ll get screwed and people would enjoy it. Hold the guitar of your destiny, called life, yourself; and play it well. If circumstances are not fair to you, keep going, without losing the charge of your path to your goals. People would discourage you, they would mislead you. Take time, and make best decision. “The only person standing between your dreams and your success is YOU.” Push yourself, don’t be dependent on anyone.

5. Connect with friends, frequently:

Friends understand the unsaid words, no matter if they are silent for years. 

The moment you fail or win, you need someone to talk to and share your emotions of that moment. You need family and friends to go back and relax with, taking some time out of your busy life. 50% of your life secrets are always known to best friends, out which 40% always remain safe, as some friends reveal few secrets, at right time :). So, make friends; call them up, if you can’t meet them often.

6. Be good, do good:

Karma haunts. 

Always be fair and good, to people and your-self too. “May your P&L account of deeds for humanity be in profits; for you have to present your Balance Sheet on the Judgment Day.” Do good and help* people as much as you can (*Conditions apply J). Be genuine while taking decisions, without prejudicing anyone.

7. Quit the rat race:

Take a break, for you are not made to win this rat race. Try something different, something unique, something worth failing, worth falling. 

You are unique. Be different. If your life has become monotonous then take a break; rethink; redefine your goals; take remedial steps and then start pursuing that. Don’t always do what others are doing, unless your high-pay-pack job demands so J. Innovate, experiment, take risks, you might fail, but keep it on.

8. Be with Parents, always: 

Sometimes, father becomes the most emotional mom on earth; and mother, the strongest dad. Parents would never demand anything, but your presence, if not possible daily, then at decent intervals. Visit them if you are away. Be with them on all occasions. Make all the events memorable for them. Be it any good news, take them by surprises. They need nothing but your love and care.

9.  Rise in Love:

If it's just dinner, it's about the food and place; if it's love, it's about the person you go with.

Express your love. “Rise in Love, with passion, falling is the old fashion.” Always listen to your heart, dare to propose, genuinely; not everyone you meet J. Make moments loveable and memorable with a treasure hunt, card, long drive, chocolates, candle light dinner, salsa, a kiss on the top of head; telling that, “I am always there for you”.

10. Start NOW:

The best day to start anything is TODAY; and the best time, NOW. 

Don’t wait, don’t think much. If you want to start living your dreams, start NOW. The time would never come back. Life is short, make best of it. Make a blue print at least. Once you do that, you would feel urge to start working on it.

So what are you waiting for? Stop reading.. Start doing.. Cheers.:)

Source: www.caclubindia.com

The 7 Laws of Clearing CA Exams

Ever since my book ‘The 7 Laws of Clearing CA Final’ is published, I have been asked this question multiple times… why did you title the book as a CA Final book when the laws mentioned in the book applies perfectly to all students of all courses?

Well, the main reason why I had decided to include the words ‘CA Final’ in the title is because initially I was of the opinion that few of the laws like ‘The Law of Belief’ and ‘The laws of Love’ would only appeal to mature minds and mind of a CA Final student is matured enough. But I was wrong. Students of all courses including IPCC are reading this book and understanding the concepts very well.

Friends I was wrong. You proved me wrong. I underestimated the maturity level of today’s young minds. They are young but they are in no way lesser matured.

But this is not the reason why I am writing this article. No, it is not to clarify my standpoint on the title.

The reason why I am writing this article is help those of you who have not yet got the chance to spend time and familiarize themselves with the 7 laws as described in the book. The 7 laws… have become a phenomenon. After receiving appreciation and great reviews from earlier rank holders and prominent faculties I have decided to bring one of the most critical and important law to you through this article.

Why do some of the brightest students fail in CA exams? This is the question that kept me hooked for a long time. Why do some students who remain academically brilliant throughout school and college, struggle in CA exams. Is it only because CA course is tougher than other courses? Really? Is that the only reason?

You know, I spent quite a good amount of time finding answers to these questions and finally I got the answer. And the answer lies in ‘The Law of Belief’.

Law of Belief says that whatever you believe… manifests itself. Belief is an idea or a statement accepted as true. When you hear something or see something and accept that consciously over and over again it becomes your belief. This is how all of your beliefs are formed.

Our beliefs reside in our subconscious mind. Whatever statement, suggestion or fact we accept over and over again, it slowly begins to get stored in our subconscious mind. Now, the subconscious mind is what defines our life. It is the control panel and controls everything that happens in and around our lives.

Your subconscious mind is the creator of your life. Your life is a mirror image of what happening in your subconscious mind. Whatever you are today is because of the self images you had stored in your subconscious mind in the past. Your subconscious mind is the store house of all what has happened to you in the past and onTHE BASIS OF past beliefs and it also defines what will happen to you in future. The look, shape and feel of your future life is dependent upon the look, feel and shape of your present beliefs.

Coming back to the question, why do academically sound students fail in CA exams? Well, it has nothing to do with how they prepare for their exams. The result is the effects but the cause of that effect is what’s happening inside.

Our beliefs take shape in 3 different ways and I’ll touch upon all 3 one by one.

1. Other’s suggestions: The moment a student takes admission in CA course, he hears below statements repeatedly from his friends, relatives and other family members.

a. Are you doing CA? Do you know how tough this course is?

b. My so and so relative has not been able to clear CA after so many attempts.

c. Do you have an idea about the pass percentage in CA course? It is less than 5 percent!

d. Don’t do CA. you will regret your decision. It is very easy to enter in this course but very difficult to come out with a degree.

e. ETC, etc, etc.

Now what happens is, repeated exposure to such statements and thought patterns begins to take root and the student who was positive about CA course (that’s why he took admission) is now filled up with all sorts of negative beliefs about this course.

Such negative beliefs and negative images about the CA course get stored in the subconscious mind. The subconscious mind then begins to transmute such beliefs into reality.

2. Own acceptance: when a student hear suggestions like these very often, he makes the mistake of accepting them as true. This acceptance permanently fixes up the negative image about CA course in his own subconscious mind.

Moreover, such student repeats these statements to his friends and other fellow students. Such repeated affirmations further do all the damage as far as having beliefs about CA course is concerned.

3. Environmental images: Below environmental images also make a deep impact on a student’s subconscious mind and permanently strengthen negative beliefs about CA course.

a. Students sitting alongside in libraries and coaching classes are all giving attempts for the 2nd or the 3rd time.

b. Social media is filled with all sorts of negative influences about CA course.

c. News paper and other forms of media regularly publish reports that lesser and lesser number of students are clearing CA exams.

The above 3 factors combined, permanently places the belief firmly in the subconscious mind that CA exams are really really tough and one cannot clear the exam without first failing in it. No wonder, the question ‘Which attempt?’ has become a disease.

You know, it is a scientific fact that – Like attracts Like. Once your subconscious mind gets an image of something it immediately begins to transmute it into reality. Your subconscious mind then begins to lead your body actions in such a way that the beliefs in fact become the reality. Your subconscious mind then attracts events, conditions, environments that are in sync with those negative beliefs about CA course and eventually ensures that such belief in fact becomes a reality.

This is the reason why students so often fail in CA exams. It has nothing to do with this course being difficult or with students preparing now well enough. No. The reason is their impossible thinking. Their beliefs and their subconscious images.

Remember, your life is but an image of what happening inside. Whenever you don’t get the right results, understand that something somewhere is wrong in the subconscious mind because your outward life events are just the mirror images of what is happening is the inward subconscious mind.

You know, after failing in 2 attempts, you prepare well and think very positive consciously about the result but it doesn’t happen. You fail again. You see, beliefs aren’t formed overnight. It is the images that you’ve stored in the subconscious mind over a period of time that controls how your life would be in reality. Thinking positively in a day or two has absolute no effect on the subconscious beliefs.

Now the question is – What is the remedy to this? How to get the desired results? How to reprogram our beliefs and eventually the subconscious images?

The answer to this question is very simple. We must take the same road that took us here to get of here as well. If beliefs are formed by the above mentioned 3 ways then we must use the same 3 channels to get it right as well. How? Here is the answer how.

1. Other’s suggestion: Never, and I repeat never entertain or accept any thought pattern that suggests CA is difficult or that is a tough course. Never accept that. If someone tells you anything negative about this course don’t lend them your ears. Stop them right away and tell them that it is a very easy course. Every year hundreds and hundreds of average students become Chartered Accountants.

If they say result is low then tell them that it used to be but now Institute have declared results to the extent of 20 – 30 percent as well.

You must not let any negative suggestion from any other person enter your subconscious mind.

Another very useful suggestion is to create group of friends wherein everyone would talk positive about the CA course.

2. Own Acceptance: it is important not the let any negative suggestions enter your mind and it is very important not to talk bad or negative about this course to your fellow friends. How you do self dialogue is very important.

How do you talk to yourself about the course? At deepest level of consciousness how do you feel about your chances of becoming a CA? Are you yourself convinced about your abilities and preparations that you are putting in?

I would give a couple of very useful suggestions that can do wonder to your life.

1. Write a statement – I am a Chartered Accountant. Put it on your study table and see it daily and repeat the suggestion to yourself. Convince yourself that you are already a Chartered Accountant, only time stands between you and your degree.

2. Record your own voice in your mobile saying something like – I am a Chartered Accountant/I got a rank in CA Final/CA IPCC etc and listen to the recording over and over again in your free time. You can do it while you lie down to sleep. Remember that it is the repetition of affirmations that lead to belief and once that belief becomes a deep conviction, things begin to happen.

3. Environmental images: There is not much that you can do to change the environmental images that come your way but there is a landmark finding that can help you greatly. The finding is that your subconscious mind cannot differentiate between what is imaginary and what is real. It accepts imaginary images just as it would accept real life images. If you close your eyes and see with your mind’s eye i.e. imagine some positive images and do it regularly then slowly but surely it begins to get stored in the subconscious mind.

See the picture of yourself as taking the degree in the convocation ceremony. Imagine yourself writing on your Facebook wall that you are a CA now… see the numbers of friends liking your status update.

Such self images are immensely powerful and if you see the same image regularly it gets stored in the subconscious and once it reaches your subconscious it begins to manifest itself. Then nothing can stop the picture to become a reality of your life.

From today begin working on your thinking in general and belief in particular. Your beliefs control you. No matter how much hardWORK you do. No matter how hard you try. If your belief and eventually your images in the subconscious are negative and are not in sync with what you want. Results would be different.

Many a times, students ask me, “sir, how long should we follow these suggestions?” and I say, “Do it until you get favorable results!” However my past experience says that 5 weeks time is what it takes to influence your subconscious mind and get the self image corrected with above exercises.

I’d like to quote what Napolean Hill had once said, “Man may become the master of himself because he has the power to influence his own subconscious mind.” So, are you ready to become the master of your life or you would still prefer to remain a byproduct of your environment?

Friends with this I end this article but I hope that you would have got the insight that I wanted to give to you. If you like this article do let me know your thoughts by commenting below and then if you want I’ll discuss more about the remaining laws that together make up ‘The 7 Laws of Clearing CA Exams’.

Remember friends – If there is no enemy within, the enemy outside cannot hurt you!

Source: www.caclubindia.com

A To Z of How To Crack Interviews

An interview is a conversation between two or more people where questions are asked by the interviewer, answered by the interviewee and vice versa, to elicit professional suitability to each other.

Interview is "Exchange of Information", where each party seeks or gives information.

During an interview, an interviewer evaluates and an interviewee does marketing of - “Professional knowledge, skills, mobility, goodCOMMUNICATION skills, personality, positive attitude and seeks right financial reward, appropriate to the position in question”

This article is focused on types of interviews, different phases of an interview, post interview activities and how to prepare for an interview.

Types of interviews

1. Telephonic interview

Sometimes the interviewers conduct telephonic interviews to cover a large number of candidates in a short span of time. The objective in this case may to have a brief conversation with all candidates and select the ones whom the interviewer would like to meet in person, like an elimination round or alternatively, the first round.

As an interviewee, one should consider the following critical aspects

a. Prepare thoroughly

b. Take the call from a quick place with no background noise

c. Preferably use a landline such that there is no network disruption and keep your mobile on silent mode

d. Do not eat or drink during interview; if required, have water but ensure that the phone is on mute

e. Lastly, have yourJOB related records organized and handy.

2. Face to face or In-person interview

This can be a meeting between you and one or two members of the staff (like an interviewee panel). It is also called Screening Interview, where the basic purpose is to get initial impression of your technical skills, non verbalCOMMUNICATION skills, attitude, interest and professional conduct.

3. Selection interview

During this interview, in depth questions are asked to evaluate your professional knowledge for the position and your ability to suit the position. You are expected toMARKET yourself as a natural addition to the team.

4. Panel Interview

During this interview, a number of people are sitting as a panel and one acts as a chairperson. Such type of interview is popular within the Public Sector as well in Campus Hiring.

While the interviewer will be lead by the Chairperson, other members ask questions related to the area that they are assessing. In most scenarios, panel members comprise of human resources, technical experts, supervisors and Head of Departments.

5. Group interview

Such interview is also called Group Discussion. During this interview, several candidates are present and they are asked to interact with each other.

During the discussion, the interviewer is a silent observer of various aspects e.g. leadership, knowledge, communication skills, team spirit, good listener etc. This technique is also used as an elimination round.

6. Sequential interview

There are several rounds of interviews, each time with different interviewers. Each Interviewer may ask different set of questions and some questions may be repetitive. While answering the interviewees, treat each interview like the first interview and do not take it lightly.

7. Lunch/ dinner interview

Such interviews are generally conducted for senior management hiring, being confidential in nature and avoidable in an office set up.

If such interviews are conducted to line or mid level positions, it is to assess the communication skills, interpersonal skills as well as table etiquettes. While ordering your meals, do not order the most expensive or most economical food items and take the middle path. Whether it is lunch or dinner never order alcoholic beverages and choose soft drinks instead. Take caution not to spill food or drinks

8. Video conference interview

Video interviews are primarily used to facilitateCOMMUNICATION between the interviewer and interviewee from different locations

One must do preparation for such an interview by practicing in front of a video camera or mirror so as to overcome camera consciousness. You can also explore using Skype orGOOGLE CHAT to do a mock interview with a friend.

Different phases of an interview

The interview process can be divided into three phases

1. Warm up phase
2. Main content phase
3. Wrap up phase

Phase 1: Warm up (when you enter)

During this phase, more of non verbal communication and less of verbal communication is used. Once you are entering the interview cabin, please keep in mind the following steps:

a. Do not enter the interview room with your travel baggage

b. Walk briskly, with purpose, heads up and stand up straight

c. Greet an individual or panel of interviewers in one go appropriately….i.e. good morning/afternoon/evening

d. Shake hands only when the interviewer(s) extend hand. Give the interviewer a firm handshake, and maintain eye contact.

e. Sit in the chair only when asked for. Ideal way of sitting is with your feet firmly planted on the floor or on the support provided by the chair with a straight back.

f. Do not keep your hands on the table; keep them either in your lap or arms of the chair.

g. Do not keep your folder on the interviewer’s table, without seeking permission or keep the folder either on the additional chair or along with the chair on the floor.

h. If offered Tea/Coffee, politely decline unless it is Tea Time, you may join them. Asking for water is perfectly normal and feel free to ask for it

i. Don’t be over-friendly

Phase 2: Main content

During this phase, the real interview starts, wherein the HR or Technical round are conducted. An interviewee while answering the technical questions should use technical language rather than speaking like a layman.

First impression - factors of interviews

a. Don't say anything negative about former colleagues, supervisors, or employers

b. Do make sure that your good points come across to the interviewer in a factual, sincere manner

c. Don't ever lie. Answer questions truthfully, frankly and succinctly. And don't over-answer questions

d. Don't offer any negative information about yourself

e. Don't answer questions with a simple ‘yes’ or ‘no’

Explain whenever possible. Describe those things about yourself that showcase your talents, skills, and determination. Give examples

Phase 3: warn up stage

At the end of the interview there are three situations:

a. You have given a very good interview; you may or may not have been given aJOB offer

b. You have given good interview and the interviewer will revert back to you after few days

c. You have not given a good interview

Six post interview activities

1. Be proactive

During interview, if you have promised to send any additional document or information, make sure it is implemented immediately.

2. Thank you letter

At the end of interview, the interviewee should endeavor to collect Business Card from the interviewer or collect the information directly from the office.

Within a day or two, the interviewee should write separate letters of thanks to all the interviewers. Each letter should be personalized and distinct.

3. Evaluate

Right after interview, recall what happened during the interview:

Ask yourself

a. What went right?

b. What went wrong?

c. What can be improved?

Do this as first activity after coming out of the interview, since everything will be fresh in your mind and you will be in a position to recall. Be truthful to yourself during this exercise.

4. Make follow up call

It is always good to follow up and ask about your status. Be polite and not pushy. Polite follow up is an indicator of good business etiquette and will help you to set yourself apart from other candidates who do not follow up.

5. Recall Difficult Questions

Immediately after the interview, when your memory is fresh, make note of the difficult questions you were asked and later prepare the answers. In this way you can improve your performance in the next interview.

6. Continue yourJOB search

In spite of the fact that you have given a good interview, at the same time there are many more candidates for interview. Thus you cannot be sure till you areCOMMUNICATED about your selection. One should continue with the job search.

How to prepare for an interview

While preparing for the interview, the following FACTORS should be kept in mind:

i. Know yourself
ii. Know about the employer
iii. Know your subject
iv. Anticipate questions
v. Anticipate interviewer’s expectations

1. Know Yourself – Introspection

Take inventory of your skills

Generic Skills

• Technical and generic skills
• Past experience and specialization
• Personal attributes including hobbies
• Analytical skills
• Problem solving skills
• Flexibility / versatility
• Inter-personal skills
• Oral and writtenCOMMUNICATION
• Organization and planning
• Time management
• Motivation
• Leadership
• Self starter / initiative
• Team player
• Know Yourself - SWOT Analysis

Strengths

• Good team player
• Communication skills
• Client relationship
• Achievement of targets
• Value addition approach
•WORK smart, instead of work hard
• Mobile
• Result oriented under pressure situations

Opportunities

• Professional advancement
• Career growth
• Building new relationships
• Exceptional performer
• Cost effective

2. Knowledge about Employer

Know

• Know full forms / complete names
• History
• Revenues
• Employees
• Work culture
• Divisions / departments
• Vision and mission statements

Sources of information

• Website
• Annual Report
• FriendsWORKING in the same company
• News articles

3. Know Your Subject

•JOB description / profile
• Study future trends and changes in technology
• Read professional journals
• Discuss with people doing similarJOBS

4. Anticipate  Questions

Ask yourself these questions

• Have I demonstrated required skill sets?
• What are my strong and weak points?
• What are my short-term and long-term goals?
• What can I offer the employer?
• What kind of environment I like?
• What do I like doing?
• Besides skills and experience, what else can I bring to this job?

Anticipate interviewer’s expectations

• About yourself
• Challenging situations you have faced
• Technical questions
• Your strengths and weaknesses
• Why should you be hired

5. Dress Code

Your dress sense during interview will make the first impact, positive or negative, it varies from company to company, depending upon company culture. Keeping this in mind given below are some guide lines on Dress Code

• Interviewer forms an opinion based on your dress, personal grooming, posture and body language
• Be conservative; don’t be influenced by fashion and vibrant colors
• Find out the dress code of the company, if possible

Dress Code: MEN

Do’s

• Suits/trousers–gray, back, navy blue
• White full sleeves shirt
• Matching tie with length up-to belt buckle
• Leather shoes, same colored belt and matching socks
• Trimmed hair, moustache & nails
• Clean shaven
• Go easy on aftershave

• Portfolio bag

Don’ts

• Party suits / jazzy trousers
• Flashy / bright coloured shirts
• Sports and party shoes
• Flashy / vibrant coloured ties
• White cotton socks
• Pony tails, untidy, uncombed hair
• French (if growing) / jazzy beard

Shoulder bags and helmets

Dress Code: WOMEN

Do’s

• Sober color, conservative suit, formal dress
• Coordinated blouse
• Leather shoes / sandals
• Limited jewellery
• Neat, professional hairstyle
• Tan or light hosiery
• Sparse make-up & perfume
• Manicured nails
• Portfolio bag

Don’ts

• Party dresses / casual clothes
• Excessive jewellery
• Excessive perfume
• Excessive make up
• Chappals / casual sandals
• Undone / loose hair
• Bright / dark lipstick and nail polish
• Big purses or shoulder bags

Source: www.caclubindia.com

How to Open PPF Account in SBI?

Today, the PPF account has become an important consideration for every individual who has a source of income. The facility of PPF not only offers an individual with the benefit of making savings on a regular basis, but also allows a person to save taxes. One of the most recognized ways to invest in PPF is investing SBI PPF accounts. You can also open PPF account in post office. But the most popular way to open PPF account is in SBI. As SBI has good network branches all over Indian include rural India.

Why Choose SBI PPF Account?

The State Bank of India is the largest bank of the economy and has branches dispersed in every corner of the nation. No matter where you are in India, you can always find an SBI branch near you. This makes this bank very attractive to people who belong from small cities and metropolitan cities.

What documents are required to open a SBI PPF Account?

As a user, you are required to submit several documents to the bank authority before you open your SBI PPF account. The following documents are essential for the purpose of opening an SBI PPF Account:

• Identity Proof- can be Voter ID Card, Driving License, Aadhar Card, etc.
• Residence Proof- can be Voter ID Card, Driving License, Aadhar Card, etc.
• 2 recent color photographs (passport size)

How to open SBI PPF Account?

The process of opening an SBI PPF is very straight forward. A person just needs to follow the given steps and within a matter of hours, his/ her SBI PPF account will be active.

Step 1- Locate a SBHI Branch near you

To begin with, you are required to find an SBI branch near you. This can done by using the online branch locator tool on the website of SBI. By using the same, you can find the nearest SBI outlet and then visit the same within its operating hours. Do not forget to take the required documents and its self-attested copies with it. You can get help from the official tool i.e. SBI Branch Locater Tool Near You

Step 2- Get a PPF Account Form

On visiting the branch, request the manger to give you a PPF Account form. This form will contain the detail about PPF and its policies which SBI follows. Go through it carefully and begin filling up the form with the necessary information.

Step 3- Submit the Form along with the required documents

Once the form is completed, submit the same to the manager or the designated counter. Do make sure that you have double checked each and every information mentioned in the form. Also, attach the documents, wherever necessary.

Step 4- Take PPF Account Passbook

After making a submission, wait for the manager to give you a PPF Account passbook. This passbook needs to be updated regularly and will contain information with respect to the deposits which you will be making in future. Moreover, this passbook needs to be maintained in a similar fashion as you maintain your bank account passbook.

How much do I need to deposit under PPF?

The Government of India has declared that people can deposit an amount of INR 500 to INR 1,50,000 within one calendar year. There are no restrictions on the number of deposits as long as the total amount mentioned above is not crossed either way.

SBI PPF Interest Rate & Maturity Period

The State Bank of India offers the option to invest in PPF to existing users and new users of its bank. The channel is aimed to create a habit of savings among the people of India, along with creating a reliable pool of investment which can be used by the banks from time to time.

What is the interest rate of SBI PPF in 2016?

The SBI PPF yields an interest of 8.70% per annum. The rate has become effective from April 1, 2013 and continues to attract a lot of investors. The steady nature of the investment policy makes it very attractive and participative for people belonging to all age groups.

How to make deposits in SBI PPF?

SBI banks allow the users to make deposits in a variety of manners. There is no limit on the minimum or maximum number of deposits. However, it should be ensured that a minimum of INR 500 is deposited each year and a maximum of INR 1, 50, 000 is permitted. Any amount which is above the given limit will not earn interest and will not be calculated underdeductions.

For making deposits in SBI PPF, a user can either make online transfer or can submit the amount physically. For making an online transfer, all that a user needs is the online banking access and the correct PPF account details. While making the transfer, it is important for the user to ensure that the name is entered correctly. For an instance, if the name of a person is Akash Kumar Singhal, then the same should appear on the PPF policy name as well. If the name mentioned is Akash K Singhal, then online transfer will not take place.

Another way of depositing money in a PPF account is by submitting the money physically in a bank. A person has to carry the amount along with a form which acknowledges the receipt of PPF. Long line and waste of time is a big concern for people who are looking forward to use the physical submission procedure.

Maturity Period for SBI PPF Policy

The SBI PPF policy matures at the end of 15 years from the date on which the policy was taken. After the maturity, a policy holder has the option to keep the total amount in another block of 5 years and earn interest on the same.

On the other hand, if a candidate wishes to withdraw the policy prior to 15 years, he can do the same by following the policy of PPF surrender. Prior consultation with the bank manager is necessary and account holders must reproduce the documents once more at the time of surrender.

The SBI PPF is one of the most trusted investments of recent time. The Government of India has granted special permission to this policy and hopes to see people saving for their future. With the exemption limit of INR 1,50,000, it is obvious that people would have something in their hand to meet an uncertain expense in near future.