PPF is probably the most popular investment option, investing in it is not only safe but you also get the benefit of tax exemption on investing in it.
Public Provident Fund (PPF) is an excellent investment option. It is not only safe but you also get the benefit of tax exemption by investing in it. The risk in investing in PPF is almost zero as it is fully under government protection.
For which people investing in PPF is very beneficial: –
Self-employed professionals and employees not covered by EPFO
Those who do not have jobs or businesses, no organized structure.
Benefits of investing in PPF
Rate of interest
The interest rate is usually 7 per cent to 8 per cent, which may increase or decrease slightly depending on the economic situation.
Currently, the interest rate is 1 percent, which is compounded annually. This is more than the fixed deposits of many banks.
There is a 15-year period for subscribers after which the amount under the tax exemption can be withdrawn.
Subscribers also have the option to extend it for 5 more years.
They can also choose whether to continue the contribution or not.
Tax benefit is available under section 80C of the IT Act.
A deduction of up to Rs 1.5 lakh can be taken on the amount invested in the scheme. Both the interest and maturity amount earned in PPF are tax deductible.
This scheme is supported by the government, so investment in it is completely safe.
You can take advantage of the loan in the third and sixth year by opening an account.This is especially beneficial for those applying for loans in a short period.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.