Public Provident Fund (PPF): Public Provident Fund is considered to be a better option of investment for long term.
Public Provident Fund (PPF): Public Provident Fund (PPF) is considered to be a better option for investment for a long period. Investment in PPF is completely safe and it also gets the full benefit of tax exemption. This is a better option for the employed people. Investment in PPF, the interest earned on it and the amount received on completion of the maturity period, all three are completely tax free. That is, there is no tax anywhere and there is no risk of any kind in it. PPF is a good investment option for salaried, self-employed professionals and employees not covered by EPFO. Apart from this, those who do not have a job, those who are doing business can also invest in PPF. Let us know that the PPF scheme can be continued for more than 15 years, so that a large corpus can be created at the time of maturity.
You can extend PPF for 5 years
If you have also invested in PPF scheme and want to continue this scheme even after the maturity period of 15 years, then there is no need to worry. PPF account can be extended for 5 to 5 years. However, you must fulfill certain conditions for this.
Application will have to be given for action
For PPF extension, first of all you have to apply to the bank or post office, wherever you have your PPF account. You have to give this one year before maturity.
500 rupees to be deposited every year
If your PPF account is extended for 5 years on your application, then you will have to deposit a minimum of Rs 500 every year. If you do not deposit this minimum amount then your account will be closed. Then to start it again, a penalty of Rs 50 will have to be paid annually.
PPF account can be closed after 15 years
This is an option that can be used in times of need of cash or financial crisis. To transfer your PPF money to a savings account, you need to submit a form to the bank or post office which will contain the details of PPF and savings account. Apart from this, original passbook and canceled check will have to be submitted along with the form. After that PPF money will be transferred to your account after maturity.
These benefits are available on PPF
The rate of interest on PPF is decided by the government. An investment of up to Rs 1.5 lakh can be made in this scheme. There are three types of tax benefits to an investor investing in PPF. The money invested in PPF not only gets the benefit of tax deduction, but there is no tax on interest and maturity amount.
