Public Provident Fund Calculator: Public Provident Fund (PPF) is the most popular plan among all the investment options. Since this is a scheme of the Government of India, the money invested in it is completely safe. Also, a certain return is also available in this scheme. Along with this, the benefit of tax saving is also available in this.
Public Provident Fund- Investment in PPF, the interest earned on it and the amount received after maturity are completely tax free. In this, loan and partial withdrawal facility is also available after few years of account opening. The tenure of PPF is 15 years. It can also be extended for five more. The interest rate of the PPF account changes every quarter. At present, interest is being received on this account at the rate of 7.1 percent.
Investment in Public Provident Fund is eligible for tax exemption under section 80C of Income Tax. The benefit of tax exemption of up to Rs 1.5 lakh can be availed on the amount invested in this scheme.
what to do after 15 years
The tenure of Public Provident Fund is 15 years. After 15 years, either you can withdraw the money or this scheme can be extended for another 5 years. You will have to submit an application for extension to your bank or post office, wherever you have a PPF account, before one year of the end of the maturity period. In this way you can deposit money in PPF for 20 years.
Also read- Invest in this scheme before March 31, you will get guaranteed pension every month
Account can be continued even without investment
After the maturity of the PPF account, if you do not take any action like – neither extend the account nor withdraw money, then your account gets extended automatically. However, you cannot deposit your contribution in this. Interest will continue to accrue on the amount deposited in the account.
You can also take loan against PPF account. This loan can be taken from the third to the sixth year of opening the PPF account. The maximum loan amount can be up to 25% of the balance.
Tags: investment tips, Personal finance, PPF, PPF account
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