PPF stands for Public Provident Fund. It is a long-term investment scheme offered by the Government of India that is designed to encourage savings among individuals. The scheme is backed by the government, which makes it a safe and secure investment option.
Under the PPF scheme, individuals can open a savings account with a designated bank or post office and make deposits of up to Rs. 1.5 lakh per year. The deposits made in the account earn a fixed rate of interest that is set by the government every quarter. The interest earned on the account is tax-free.
The PPF account has a maturity period of 15 years, which can be extended in blocks of 5 years. Partial withdrawals are allowed from the account after the completion of 7 years from the date of account opening, subject to certain conditions.
One of the key benefits of the PPF scheme is that it is exempt from wealth tax. In addition, the deposits made in the account, as well as the interest earned, are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.
Overall, the PPF scheme is a popular long-term investment option among individuals in India, particularly those who are looking for a safe and secure way to save for their future financial needs.
Here’s how one can open a PPF account? – How to open PPF account?