PPF stands for Public Provident Fund, which is a popular long-term investment option in India. It is a government-backed savings scheme that offers tax benefits and a guaranteed return on investment.
Here are some key features of PPF:
Tax Benefits: Contributions made to a PPF account are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum limit of Rs. 1.5 lakh per financial year.
Interest Rate: The interest rate on PPF is set by the government and is currently 7.1% per annum. The interest is compounded annually.
Tenure: The maturity period of a PPF account is 15 years, and it can be extended in blocks of 5 years indefinitely.
Investment Limits: The minimum amount required to open a PPF account is Rs. 500, and the maximum amount that can be invested in a financial year is Rs. 1.5 lakh.
Withdrawals: Partial withdrawals are allowed from the 7th year onwards, and the entire amount can be withdrawn at the end of the maturity period.
Account Benefits: PPF accounts can be opened at designated post offices and banks, and they offer the dual benefit of savings and tax savings.
Overall, PPF is a safe and attractive investment option for individuals looking to build long-term savings while also enjoying tax benefits.
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