If you are a conservative investor and looking for safe investment option with attractive post tax returns along with exemptions in Income Tax, then a Public Provident Fund account is the solution. Few salient features of investing with Public Provident Fund Account are
- Attractive interest rates that are fully exempted from Income Tax under section 80 C
- Good long term investments of 15 years
- Deposit Amount as low as Rs.500 per annum
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Public Provident Fund is primarily launched to encourage saving habits for self employed and salaried class. Not only it offers tax exemption like NSC but this scheme falls under the triple E regime which means that all three components namely Principal, Interest and outflow offers tax benefits or are tax exempted. Not only this, amount in PPF account cannot be attached by any order or decree of court with regards to any type of liability or debt taken by the investor.
Various banks like SBI, ICICI, Canara Bank and Post offices has been authorised by the Ministry of Finance to open PPF Account, as well as provide related services like collecting subscription amounts etc. through its designated branches. Most banks now provides an online access to your PPF accounts. Using PPF online facility you may
- Fill form online for PPF account
- View your PPF account statement
- Transfer funds from linked Savings Bank Account online
Investment as low as Rs. 500 to maximum Rs. 1,50,000 in the PPF account as a lump sum deposit or in maximum 12 transactions within a financial year. Premature closure of account is not allowed and tenure of a PPF account is 15 years. After this, investor may completely withdraw the accumulated balance (Principal + Interest) and close the account. However, if an investor wishes to extend the period of his PPF account, he or she may seek extension for a block period of 5 years for any number of times. In case, where an investor requires funds before maturity, he/she can avail loan or withdrawal facility.