PPF or Public Provident Fund is one of the most famous, tax-saving investment scheme-backed by the Indian government.
PPF or Public Provident Fund is one of the most famous, tax-saving investment scheme-backed by the Indian government. Many people choose this scheme to get good returns as it is a risk-free investment and has a number of advantages.
From an amount as little as Rs 500 per year, individuals can invest a maximum of Rs 1,50,000 per year in their PPF accounts, which come with a maturity period of 15 years. One benefit of having a PPF account, the account holder can get a loan in emergencies at a nominal interest rate of only 1% per year. But PPF account holders can avail of this benefit from the third to the sixth year after opening the account.
While a PPF account comes with a maturity period of 15 years, account holders can withdraw money after six years. Account-holders can also extend the term of their PPF account upon maturity.
Tax benefits:
PPF account holders can save tax annually up to Rs 1,50,000 by investing this much in a PPF account. Meanwhile, the interest earned on PPF accounts is exempted from any levy under Section 80C of the Income-tax Act of 1961. Individuals also can withdraw the amount upon maturity without being taxed.
While the interest rate of PPF is revised, it is currently maintained at 7.1 percent. The interest rate on PPF is among the highest in government-backed fixed income instruments.
Opening a PPF online:
To open a PPF account online, log in to the bank's net banking interface and go to the option of opening a PPF account there. Now, enter all your details, including those of the bank and nominee. After all the details will be verified, the account will be created and the individual can successfully invest money in the fund.
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