What is PPF?
Public Provident Fund (PPF) is a savings-cum-tax-saving investment scheme introduced by the Government of India. It is designed to encourage individuals to save for their retirement while also offering tax benefits. PPF accounts can be opened by resident Indian individuals, including minors, and provide a secure and long-term investment option.
Key Takeaways:
- PPF is a long-term savings scheme backed by the Indian government, designed to help individuals build a retirement corpus.
- Contributions to PPF are eligible for tax deductions under Section 80C of the Income Tax Act, making it a popular tax-saving instrument.
- The interest rate on PPF is set by the government and is typically higher than bank savings rates. The current interest rate is 7.1%
- PPF has a mandatory lock-in period of 15 years. However, partial withdrawals are allowed from the 7th year onwards.
- Investors can deposit a minimum of ₹500 and a maximum of ₹1.5 lakh per financial year into their PPF account.
Table of Content
- How does the PPF Account Work?
- How to open a PPF Account? (Online & Offline)
- How to take a loan against PPF?
- How do you Withdraw the PPF Amount?
- Tax Benefits of Investing in PPF
- Process to Close a PPF Account
- Process to Transfer a PPF Account
- List of Banks Offering PPF Account
- Difference between PPF and EPF
- Public Provident Fund – FAQs
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