Public Provident Fund (PPF) is a very good option for investment. This is a retirement savings scheme. In this, returns are guaranteed by the Government of India. If you can open a PF account for your children also. When should withdrawal be made from PF account and how is its interest calculated? Know about many things related to PPF account.
People save and invest to meet future needs. Many people invest in the stock market, although there is a lot of risk in it.
In such a situation, many people prefer to invest in Public Provident Fund or PPF. This is a very good option to continue earning income for future needs even after retirement.
PPF is a retirement savings scheme. The Government of India guarantees returns in this. Apart from this, the benefit of tax benefit is also available in it.
You can get the benefit of tax deduction under Section 80C of the Income Tax Act. At present the government gives 8.65 percent interest in PPF.
Today we will tell you about information related to PPF fund which many people do not know.
Important things about PPF account
- In PPF, interest is calculated on the minimum balance between the 5th and the last date of every month. Therefore, the account holder should contribute before the 5th. If you are thinking of withdrawal then you should withdraw it only after the 5th of the month.
- You cannot open a PPF account jointly with someone else. You can open a savings account or current account with a partner, but the PPF account is opened only in the name of the employee.
- You can also open a PPF account in the name of your minor children. If the guardian already has a PF account, then the guardian can deposit Rs 1.50 lakh annually in the child’s account against the credit of his account.
- If the contribution to the minor’s account comes from the income of the parents, then he can avail tax exemption under 80C of the Income Tax Act.
- When the child turns 18, it is necessary to change the status from minor to adult. For this an application has to be given. In this the signature of the minor is attested by the guardian. After which the account is operated by an adult.
- Let us tell you that any NRI can open a new PPF account, but if the NRI has an old PF account then he can continue it.
- When you have been investing in your PF account continuously for 7 years, you can make partial withdrawal from it. This withdrawal is tax free.
- After completion of 15 years of PF account, you can withdraw the entire amount from it. The amount withdrawn from the account is tax free.
- The maturity tenure of PF account is 15 years. You can continue investing in it even after 15 years. You will need to submit the form to continue your account.
