PPF Account

PPF Full Form: Public Provident Fund

Key Highlights

• PPF account is a scheme under which a person can deposit money into this account with no tax liability on it, earning interest on it.

• It is a good way to save money for long-term goals, like retirement or paying for your kids' college.

What is PPF Account?

PPF account is a scheme under which a person can deposit money into this account with no tax liability on it, earning interest on it. It is a good way to save money for long-term goals, like retirement or paying for your kids' college.

How to Open a PPF Account?

• A PPF account can be opened at a bank or post office.

• It comprises of the primary KYC documents, Aadhaar card, PAN card, and a passport-sized photograph.

• The minimum deposit is ₹500 per year, and the maximum limit is ₹1.5 lakh per year.

How to Deposit Money into the PPF?

• Payments can be done once a month, once in a quarter, and once in a year. You would get the payment through cash, a check, or even by an internet transfer.

• Interests added on year after year aggregate to be a bigger amount.

• Section 80C of the Income Tax Act covers donations, hence saves tax on the amount that is paid for PPF contributions.

How do I Get the Amount in PPF?

• Partial Withdrawal: you can withdraw 50% of the total amount after completing 5 years.

• Complete Withdrawal: you would be able to withdraw your total amount completely after the maturity, after 15 years

• Extended Option: You would be able to extend your PPF for yet another 15 years by adding 5 years at a time

Is PPF Interest Taxable?

No, you won't have to pay taxes for the income you get with PPF. It is in the E-E-E category, which means:

• Investment: You save up to ₹1.5 lakh of investment through the 80C relief.

• Interest Earned: No Tax Is Due.

• Amount Received at Maturity: Completely tax-free.