Want to open a PPF account? Check details
Having a maturity of 15 years and offering decent interest rates along with tax benefits, PPF is among the priority of small savers.
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FollowNew Delhi: Public Provident Fund or PPF is a popular savings instrument among investors looking for safe and long-term investment options, who wish to build wealth by depositing small amounts of money on a monthly basis.
The investment scheme offers investment decent returns coupled with tax benefits under Section 88 of the Income Tax Act. Having a maturity of 15 years and offering decent interest rates along with tax benefits, PPF is among the priority of small savers.
According to the HDFC Bank website, “The PPF is popular because it is one of the safest investment products. i.e., the government of India guarantees your investments in the fund. The interest rate is set by the government every quarter. PPF scores over many other investment options mainly because your investment is tax-exempt under section 80C of the Income Tax Act (ITA) and the returns from PPF are also not taxable.
Bank customers can open their PPF accounts by visiting a nearby bank branch. A few banks in the country allow their customers to begin their investment journey with the PPF scheme via net banking facility.
An investor can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh per annum in the PPF Scheme.
Currently, the Central government is offering an interest rate of 7.10% per annum on PPF investment. The rates are fixed by the government on a quarterly basis. Moreover, investors can avail of tax benefits against their PPF investments under Section 88 of the Income Tax Act.
An individual can open a PPF account with cash or a cheque. In the case of a cheque, the date of realisation of the check in the government account is the date of account opening/subsequent deposit in the account.
A PPF account holder can claim deduction under section 80C of the Income tax act.
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