Sarkari Yojana PPF: The Public Provident Fund (PPF) is a government-backed savings plan recognized for its assured returns and tax advantages. To ensure this government initiative benefits the maximum number of individuals, every post office across the nation has the ability to open PPF accounts. The PPF account initiated at the post office functions the same way as the PPF account set up at the bank.
What is PPF?
The Public Provident Fund (PPF) at the Post Office is a long-term savings program provided by the Government of India via the post office. This investment choice provides appealing interest rates in addition to tax advantages. PPF features a lock-in duration of 15 years. The funds invested in PPF and the interest accrued in this plan are exempt from taxes. As a result, it becomes an appealing choice for individuals aiming to reduce their tax burden. According to Section 80C of the Income Tax Act, investments of up to Rs 1.5 lakh annually in this scheme are exempt from taxes. In addition to this, there is no tax due on the interest earned from this sum or on the maturity amount.
Interest rate and loan
Investors are allowed to make a partial withdrawal in the seventh year of their investment in the scheme. The government determines the PPF interest rate, which can fluctuate every three months. At present, the PPF interest rate stands at 7.1 percent.
How to open an account?
To start, visit your closest post office or download the PPF application from the internet. Once completed, fill out the form and submit the required KYC documents. A photo in passport size will also be necessary. You can start an account with a minimum of Rs 500. Keep in mind that an annual deposit limit of Rs 1.5 lakh applies to the account. Upon submission, you will receive a PPF passbook as well.
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