PPF or Public Provident Fund is a long-term tax saving investment scheme offered by the government of India. It is a suitable product for financial planning for long-term goals, such as retirement planning.
There are several benefits of PPF which have been discussed in this video.
1. Interest rate on PPF is higher than bank FD
2. E-E-E tax benefit including deduction u/s 80C and u/s 10 of the Income Tax Act
3. Premature closure permitted
4. Partial withdrawal is permitted
5. Loan can be availed against PPF account
6. Legal Immunity
7. Completely risk-free PPF account We have also shared some tips for investment in PPF.
The rules of PPF are also discussed in the video. As per the PPF calculator, the PPF maturity amount at the end of 15 years is over Rs. 40 lakhs, assuming you invest Rs. 1.5 lakhs every year at 7.10%. PPF account extension is available in blocks of 5 years after completion of 15 years maturity.