PPF Account: PPF is a safe investment option. You can open PPF account in post office or bank. There is a benefit of tax deduction on investment.
Can open an account for 500 rupees
Public Provident Fund (PPF) can be a good option if you are looking for a scheme to invest for good returns along with tax savings. PPF is a safe investment option. You can open PPF account in post office or bank. There is a benefit of tax deduction on investment. Apart from this, the amount of maturity and interest income is also tax-free. Its most important thing is that the amount deposited in PPF account cannot be seized under any court order.
Let us know that the year 2019 Modi government implemented the Public Provident Fund Scheme 2019. The government had made a major change in the rules of Public Provident Fund (PPF). Under this rule, the amount deposited in the PPF account cannot be seized even on the court’s order to recover any loan or liability of the account holder.
Special features of PPF account
>> After the completion of 15 years after opening PPF account, you will be able to deposit money in PPF for the next five years even after maturity.
>> The interest rate of PPF is determined by the Government of India every three months.
>> In a financial year, you cannot invest less than 500 rupees and more than 1.50 lakh rupees in this scheme.
>> An investment of Rs 500 in a PPF account is compulsory. If the account holder does not deposit a minimum amount of Rs 500 during the year, then this account will be closed.
>> At the end of every year, the amount of interest is deposited in the account of the account holder. Currently, the PPF scheme has an interest rate of 7.1 per cent per annum.
>> The amount deposited in PPF account can be withdrawn anytime after 5 years of opening the account.
Account transfer facility
PPF account can be transferred from one post office to another and post office to bank and bank to post office. The amount deposited in PPF can be exempted under Section 80C of the Income Tax Act and the interest on the deposit is completely tax free.
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