Public Provident Fund: The most important thing about the PPF account of the post office is that it can be availed by investing very little capital in it. Any citizen of the country can take advantage of the PPF scheme.
New Delhi. Employed or businessmen all need a sound retirement planning to meet their day to day expenses after retirement. This becomes even more necessary in view of the current situation. However, the biggest problem here is where to invest which is safe as well as gives good returns. Also, get enough money at the time of retirement that you do not have to face financial crisis in future, suppose you do not have much money to collect retirement fund, then the post office can help you in a better way. Is.
Account can be opened by depositing Rs 500:
By investing in the Public Provident Fund of India Post, you can accumulate a good corpus at the time of retirement. The most important thing about the PPF account of the post office is that it can be availed by investing very little capital in it. Any citizen of the country can take advantage of the PPF scheme. To open a PPF account, a minimum deposit of Rs 500 has to be made. Minimum Rs 500 and maximum 1.5 lakh can be deposited in PPF account annually.
Exemption from tax is available under section 80C of the Income Tax Act:
Tax exemption is available under section 80C of the Income Tax Act on the amount deposited in the PPF account. Also the entire interest earned in the account is tax free under section 10 of the Income Tax Act. Loan facility is also available from the account from the third financial year to the sixth financial year and withdrawal can be made from the account from the seventh financial year. After maturity the account can be extended in blocks of 5-5 years but it is mandatory to deposit the minimum amount in every financial year. The interest earned on Public Provident Fund is not fixed. The government reviews its rate every three months and changes are made if necessary.
