PPF Scheme is such a scheme which gives three types of benefits to the investors. Investors also get a lot of benefit from them. This scheme comes under section 80C of income tax, so the money invested in PPF account is tax free. There are many benefits of PPF account which will be discussed below.
Saving Scheme: Many types of schemes are being run by the Central Government. Public Provident Fund (PPF) is also included in these schemes. Public Provident Fund is an investment scheme backed by the Government of India that offers a reasonable rate of interest, compounded annually. It is one of the safest and most common investment plans in India as it guarantees assured returns on the amount invested over a specified period.
On the other hand, PPF scheme is such a scheme which gives three types of benefits to the investors. Investors also get a lot of benefit from them. This scheme comes under section 80C of income tax, so the money invested in PPF account is tax free. There are many benefits of PPF account which will be discussed below.
Tax Benefit- Saving tax is one of the primary benefits of PPF account. It is completely tax free. Tax benefits of PPF account include tax deduction under section 80C of the Income Tax Act. Apart from offering guaranteed returns, the entire value of the investment is exempt, making it a tax-efficient investment.
Investment- PPF scheme is also a good scheme in terms of investment. This scheme provides the facility to invest for the long term. There is a lock-in of 15 years in this scheme and the maturity amount is available only after 15 years. In such a situation, long term investment can be done under this scheme.
Saving- On the other hand, the PPF scheme also gives an opportunity to save. In this scheme, the account holder can put a minimum of Rs 500 as savings in a financial year. At the same time, in a maximum of one financial year, an investor can save up to Rs 1.5 lakh in this account. On which at present interest is also being given on the basis of 7.1 per cent.
