Public Provident Fund is one of the most secured, long term, government backed, investment options available in India
Features of Public Provident Fund are:
- Income Tax exemption under Section 80C
- Tax Free Interest amount
- Compound interest on Investment
- Loan facility from PPF Account
- PPF Account can be opened in a Bank or Post office
- PPF interest amount along with principal is safe and guaranteed
- Minimum investment in a year is Rs. 500 and maximum is Rs. 1,50,000/-
- Renewal for further period of 5 years after completion of 15 years
The only draw back is you can withdraw the invested money by the end of 6th year.
PPF is a tax saving option. Amount invested upto Rs. 1,50,000/- is exempted under section 80C of Income tax Act.
A resident Indian citizen is eligible to open a PPF account in his/her name.
PPF Account can be opened in the name of Minors also in their name, provided
it is operated by their parent.
PPF Account of Non Resident Indians
NRI are not permitted to open a new PPF account. However, any existing account in their name remains active till the completion of tenure. There is no extension option for for PPF account of NRIs.
PPF Account can be opened in an authorized Bank or in a Post office
The following are the basic documents to open a Public Provident Fund
- Aadhaar, Voter ID, Driverís License, etc.
- PAN card.
- Residential address proof.
- Form for nominee declaration.
- Passport sized photograph.
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