All about investing in Public Provident Fund(PPF).

Public Provident Fund is one of the kind of investment available for common people which not only saves money, but also your tax!

So read it till end to learn it.

  • An Individual can open account with ₹100/- but has to deposit minimum of ₹500/- in a financial year and maximum of ₹150000/-.
  • Deposits can be made in lump sum or in 12 installments.
  • From 01.01.2018, interest rate is 7.6% per annum(compounded yearly).
  • Joint account cannot be opened.
  • Account can be opened in cash/cheque. In case of cheque, the date of realization of cheque is date of opening of account.
  • Nomination facility is available at the time of opening of account and after opening also. Account can be transferred from one post office to another.
  • The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts.
  • Maturity period is 15 years but same can be extended within one year for further 5 years and so on.
  • Maturity value can be retained and without further deposits also.
  • Premature closure is not allowed before 15 years.
  • Deposits qualify for deduction from income tax under Section 80C of IT Act.
  • Interest is completely tax free.
  • Withdrawal is permissible every year from 7th financial year from the year of opening account.
  • Loan facility is available from 3rd financial year.
  • It cannot be attachment under court decree order.
  • The PPF account can be opened in a Post Office which is double handed and above.

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