Public Provident Fund(PPF) u/s 80C

Introduction

In this article I will be writing about the Public Provident Fund(PPF) as the tax savings component. In our previous article, I have explained about the Provident Fund(PF) and its features. PPF is suitable for those who don’t have PF account or any one who is looking for the long term savings. This article explains the features and benefits of opening PPF account. If you have any doubts, please post it in the comments section. Subscribe to our free email updates.

Public Provident Fund(PPF) u/s 80C

The following are key facts about the PPF as the tax exemption investment:

1. You can deposit maximum of Rs.70000 per year.
2. PPF offers 8% interest rates.
3. Interest income is tax free.
4. It has the lock-in period of 15 years.
5. You can with draw money from seventh year onwards. If you want the money before seventh year, you can take the loan.
6. Maximum of 50% amount you can withdraw.
7. PPF account can be opened with any of the nationalized banks like SBI,etc.

Summary

I hope this article would have helped you to understand the PPF and its benefits. This savings scheme is very useful for the long term. You can plan for retirement or open an account for your child. Thank you for reading this article. If you have any doubts, please post it in the comments section.

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