Benefits of PPF Account
Investment in a PPF Account is very beneficial for the PPF Account Holders. Benefits of PPF Account are listed below:
- Guaranteed Returns: Maximum Investment Amount of Rs 150,000 per year
- Available for long Tenure: Public Provident Fund (PPF) is a long term investment option for 15 years
- Interest Rate is fixed: Presently 8.00% p.a. effective from 1 October 2018
- Compounding of Interest: Interest Rate is compounding annually
- Tax Free Returns: Interest earned is not taxable
- Income Tax Rebate: Income Tax Rebate u/s 80C is available, up to Rs 1,50,000/- p.a.
- Tax Free Maturity: Tax Free maturity is available
- Premature Withdrawal is allowed: Only partial amount, after the 5th year and subject to a limited extent only
- Loans Availability: Loan from third year onwards is available
- No TDS: No Tax Deduction at Source (TDS) made under PPF Account
- Safety: It is the Safest Investment
- Renewal/ Extension of PPF Account: A PPF Account can be renewed/ extended within 1 year of maturity for further 5 years and so on in the block of 5 years indefinitely
- Transfer Facility: PPF Account can be transferred to any bank or post office
- No Attachment: PPF funds can never be attached under court order or cannot be claimed by creditors
- Nomination Facility: It is provided by a PPF Account