What is Public Provident Fund (PPF) and its benefits

What is Public Provident Fund (PPF) and its benefits
PPF or Public Provident Fund is one of the most popular mediums used by taxpayers to save tax under Section 80c.

Public Provident Fund Features:

Risk-return equation

The interest rate for Jan -Mar 2020: 7.9%

Low risk and one of the safest investment

Investment limit is yearly 500 to 1.5 Lakh

In PPF it is mandatory to invest yearly in PPF for 15 Years

Lock-In the period of PPF is 15 Years

Partial withdrawal option for selective reasons from 7th year

Tax benefits: PPF is only a tax saving option which qualifies EEE(exempt, exempt, exempt)

Means your investment get three benefits :

1: No tax on the invested amount under section 80C

2: No tax on returns from PPF

3: No tax on the maturity amount

Published by Nidhi Mehra

I am blogger with 5 years of experience in writing articles and topics related to finance and funds

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