Rules of PPF: One of India’s most well-liked investment options that meets the requirements of people from all walks of life is the Public Provident Fund Scheme. Investors can invest in the PPF scheme for a period of 15 years and receive tax benefits of up to Rs 1.5 lakh under Section 80C of the Income Tax Act in addition to a strong interest rate of 7.1% on a quarterly basis. Account holders have three choices following maturity:
- Take out the entire sum: After the maturity period has expired, account holders can fill out a form at a bank or post office to take out all of the money in their PPF account.
- With a new PPF investment, extend your investment by five years: By completing a form and investing, account holders can extend their account for an additional five years to continue investing in the PPF scheme and earning strong returns.
- Keep up with previous investments: Account holders who wish to maintain their existing investments but do not wish to make any new investments are able to do so. They will be able to extend the account for an additional five years and continue to earn interest on the money they have deposited without having to invest any additional money.
Upon maturity, account holders can take advantage of tax-free withdrawals in addition to the three post-maturity options. Consequently, the PPF plan is an appealing investment option for all social classes, working or not. To achieve a variety of financial objectives, an increasing number of people are investing in this scheme, which is gaining popularity.
