The Public Provident Fund (PPF) is one of the most popular savings option in India and this is the tax benefit it offers - it comes under the EEE (exempt-exempt-exempt) tax status.
This means that at the time of investment, the interest earned, and the amount that is received at maturity are all tax-exempt or free.
PPF is an financial option that comes with a lock-in period of 15 years and the maturity date is not calculated from the date of the opening of account.
The date of calculation of maturity is taken from the end of the financial year in which the deposit was made irrespective in which month or date the account was opened.
It is among the few investments that not only offer you tax benefits under Sec 80C of the Income Tax Act, but also the interest income is exempted from tax.
The other advantage is that it helps to build a long term investment corpus for retirement when looked at from an interest and tax perspective.
Since its inception, the objective was to encourage savings across income classes, minimum deposit requirements are very low and affordable.
They are also tax-free accounts, easily accessible, safe being backed by the government and simple to understand, making them a popular investment avenue for a large majority of individuals in India.
The interest rates are not fixed for the entire tenure of the holding while the maximum amount that can be deposited in the account is also subject to change.
All those who are employees and working with professionally managed companies, must be aware of the Employee Provident Fund (EPF).
The employer and employee equally contribute to these funds, the return of investment is interest earnings and the total amount invested by an individual gets tax exemption under section 80C.
This means that at the time of investment, the interest earned, and the amount that is received at maturity are all tax-exempt or free.
PPF is an financial option that comes with a lock-in period of 15 years and the maturity date is not calculated from the date of the opening of account.
The date of calculation of maturity is taken from the end of the financial year in which the deposit was made irrespective in which month or date the account was opened.
It is among the few investments that not only offer you tax benefits under Sec 80C of the Income Tax Act, but also the interest income is exempted from tax.
The other advantage is that it helps to build a long term investment corpus for retirement when looked at from an interest and tax perspective.
Since its inception, the objective was to encourage savings across income classes, minimum deposit requirements are very low and affordable.
They are also tax-free accounts, easily accessible, safe being backed by the government and simple to understand, making them a popular investment avenue for a large majority of individuals in India.
PPF accounts can be opened at any nationalized, authorized bank and authorized branches, post offices and private banks as well.
These accounts can be opened by filling out the required forms, submitting the relevant documents and depositing the minimum pay-in at the authorized branches or offices for completion.
Account can be opened by cash/ Cheque and in case of Cheque, the date of realization of C
Interest rates are set and announced by the government of India. is calculated for a financial year according to the rate announced for the said year.These accounts can be opened by filling out the required forms, submitting the relevant documents and depositing the minimum pay-in at the authorized branches or offices for completion.
Account can be opened by cash/ Cheque and in case of Cheque, the date of realization of C
The interest rates are not fixed for the entire tenure of the holding while the maximum amount that can be deposited in the account is also subject to change.
All those who are employees and working with professionally managed companies, must be aware of the Employee Provident Fund (EPF).
The employer and employee equally contribute to these funds, the return of investment is interest earnings and the total amount invested by an individual gets tax exemption under section 80C.
The option to increase the employee contribution is also available where you can withdraw your PF based on upper limits and it is allowed for some specific purpose only.
If you change your job or you quit, then you can withdraw the PF or transfer with your new employer and it is also taxable if a criterion of continuous service for five years is not fulfilled apart from certain other conditions. Returns on PF are also similar to PPF.
If you change your job or you quit, then you can withdraw the PF or transfer with your new employer and it is also taxable if a criterion of continuous service for five years is not fulfilled apart from certain other conditions. Returns on PF are also similar to PPF.
You can always opt for the PPF scheme as a means that is to deliver for the similar purpose of investment and saving.
Though the maturity period for PPF account is 15 years as seen above, but partial withdrawal is allowed form 7th year onward subject to the prescribed specified limit.
The option of loan against your PPF account is also allowed and the same can be availed during a specific time period.
PPF is one of the best and easiest investment tool to serve your long term financial needs and its returns are completely tax free and offers you tax savings as well.
One should invest in it though small or big but consistently and everyone should open a PPF account right when they start working and as a parent also you should open PPF accounts in your children’s name so that once they attain maturity they continue it and enjoy the benefits of the PPF account.
Though the maturity period for PPF account is 15 years as seen above, but partial withdrawal is allowed form 7th year onward subject to the prescribed specified limit.
The option of loan against your PPF account is also allowed and the same can be availed during a specific time period.
PPF is one of the best and easiest investment tool to serve your long term financial needs and its returns are completely tax free and offers you tax savings as well.
One should invest in it though small or big but consistently and everyone should open a PPF account right when they start working and as a parent also you should open PPF accounts in your children’s name so that once they attain maturity they continue it and enjoy the benefits of the PPF account.
