PPF Rules: Public Provident Fund (PPF) is a very good scheme for long term investment. There is no risk in investing in it. Its interest rate is attractive. Financial advisors recommend including it in retirement planning for this reason.
PPF Rules: Many people want to invest in such a scheme, which has the facility of withdrawing money before maturity if needed. In this regard, Public Provident Fund (PPF) is right. This scheme is very good for long term investment. Many financial advisors also recommend including this scheme in retirement planning. Its features are quite attractive. This scheme is also good from tax point of view. There is no tax on the maturity amount in this. There is no tax on interest either. If the taxpayer uses the old regime of income tax, then he can also claim deduction under section 80C.
PPF matures in 15 years
Public Provident Fund (PPF) matures in 15 years. The government reviews its interest rate every quarter. Currently the interest rate is 7.1 percent. Since this scheme has the support of the government, there is no risk in investing in it. Therefore, investors who do not want to take much risk can invest in this scheme. Deduction can be claimed by investing a maximum of Rs 1.5 lakh in this scheme in a financial year.
Permission to withdraw money before maturity
The specialty of PPF is that the investor can withdraw some money from this scheme even before maturity (15 years). Some conditions are fixed for this. Partial withdrawal is allowed from this scheme after 5 years from the date of opening the account. The investor can withdraw up to 50 percent of the balance amount in the account after the fourth year. This means that if you have opened a PPF account on January 1, 2024 and you have Rs 3 lakh deposited in your account on January 1, 2028, then you can withdraw up to Rs 1.5 lakh after January 1, 2029.
Also allowed to close account before maturity
Another feature of this scheme is that if money is needed for treatment and education, this scheme can be closed before maturity. For this, the account should be 5 years old. This means that after 5 years of opening the account, it can be closed under special conditions. Premature closing of the account will attract a penalty of 1 percent on the total interest amount. Another big feature of this scheme is that the investor can extend the period of this scheme for 5 years after maturity.
Most Read Articles:
- 1- Year FD Rate: These banks are giving the highest interest on 1 year FD, see the list
- Employee DA Hike Update: Central employees will get a gift before Rakshabandhan, this much increase in DA is expected
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
