PPF: Public Provident Fund (PPF) is an excellent option when it comes to safe and profitable investment for the long term. This scheme is special for those who want returns on their investment and want fixed returns for a long time
PPF: Talking about safe and profitable investment for the long term, Public Provident Fund (PPF) is an excellent option. This scheme is special for those who want returns on their investment and want fixed returns for a long time. You can invest a minimum of Rs 500 to a maximum of Rs 1.5 lakh annually in a PPF account. This scheme matures in 15 years and is getting interest at the rate of 7.1%.
Benefits of tax exemption
The biggest advantage of PPF is that it offers tax benefits at three levels.
Investment: You can avail tax exemption under Section 80C on investments made in PPF.
Interest/Returns: There is no tax on the interest received in this scheme.
Maturity: The amount received on maturity is also completely tax-free.
Due to these benefits, PPF remains a popular investment option, especially for those who want safe investment in the long term along with tax savings.
Interest will be available even after maturity
The most special thing about the PPF scheme is that even if you do not withdraw money from your account after the maturity period of 15 years, your money will still be safe. You will continue to get interest on it. This interest will continue to be given according to the current PPF interest rate. Also, tax exemption is also applicable on it. You can withdraw money from the account whenever you want, if you want, you can withdraw the entire amount at once or withdraw a partial amount and let the remaining amount remain deposited in the account. You will continue to get interest on the deposited amount.
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Account extension and contributions
If you want to get more benefit from the interest you get from your PPF account, you can extend it in blocks of 5-5 years. This extension can be done unlimited number of times. For extension, you have to submit an application to the bank or post office where you have your PPF account while continuing your contribution.
Extension method
If you want to extend the PPF account even after maturity and want to continue investing, then you have to submit an application to the bank or post office within 1 year from the date of maturity. For this, you have to fill a form, which has to be submitted in the same bank or post office branch where you have your PPF account.
Investing in PPF is beneficial
The government has not only made the PPF scheme safe, but by investing in it for a long period, you can create a large corpus. The tax exemption at all three levels, the assured interest rate and the facility of getting interest even after maturity make it a popular and reliable investment option.
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