Investing in PPF is also a better option in terms of retirement planning. At present, interest is being given on it at the rate of 7.1 percent.
The maturity period of PPF is 15 years. After maturity, will it be better to withdraw the amount of PPF or will it be beneficial to keep investing in it, many such questions keep swirling in the mind of investors. PPF investors have many options available which they can use.
Public Provident Fund (PPF) is one of the best investment options. This is not only a long-term investment, but those investing in it also get income tax exemption. Under Section 80C of Income Tax, investment up to Rs 1.5 lakh per annum is exempt from tax. Also, the entire amount received on maturity is also tax free, that is, no tax is to be paid on that too.
Investing in PPF is also a better option in terms of retirement planning. At present, interest is being given on it at the rate of 7.1 percent. The maturity period of PPF is 15 years. After maturity, will it be better to withdraw the amount of PPF or will it be beneficial to keep investing in it, many such questions keep swirling in the mind of investors. PPF investors have many options available which they can use.
Close the PPF account
The first option that investors have is that they can close this account after the completion of 15 years and its maturity. The amount received on maturity is completely tax free. Therefore, investors can keep it in their savings account.
Can be extended for 5 years without contribution,
on completion of the period of 15 years, you can extend it for another 5 years without making any monthly contribution. During this time you will not have to deposit any amount in this account. Interest will continue to accrue on it according to that time. But if you need money in the meantime, then you can make a withdrawal annually. There is no limit on the withdrawal amount for this.
You can continue with the account by making a minimum contribution,
if you want to continue your PPF account even after maturity, then during this time you can also choose the option of minimum contribution in it. This means that apart from the corpus, you will also get interest on fresh deposits.
However, there are some limitations regarding withdrawal from PPF account during this period. If you extend the PPF account for 5 years, you can withdraw only 60 per cent of the maturity amount at the beginning of the extension period. Apart from this, only one withdrawal can be made annually.
