PPF income tax benefits and Advantages

Public Provident Fund is a tax-free savings scheme offered by the Government of India, wherein interest on the account is set for every quarter and is paid by the government

What you should know?

The interest rate on PPF is decided quarterly by the central government and for July to September quarter.

PPF account matures after completion of 15 years.  The maturity amount of PPF is 100 per cent tax-free. PPF is a 100 per cent Debt oriented product, guaranteed by the government, providing safety of capital.

How much can you invest?

In PPF, an investor can’t invest beyond Rs 1.5 lakh. A PPF investor can stop investment after 5 years and can withdraw the whole amount after 15 years.

What are the tax benefits?

Under Section 80C, an income taxpayer can claim tax exemption up to Rs 1.5 lakh per annum investment in PPF. However, this section gives a collective income tax exemption up to Rs 1.5 lakh which includes ELSS Mutual Fund, PPF, Voluntary Provident Fund (VPF) investments as well. 

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