Finance Minister has enhanced the Public Provident Fund (PPF) ceiling from current Rs 1 lakh to Rs 1.5 lakh in a financial year. PPF is one of the most popular tax-saving schemes.
PPF accounts can be opened in a post office or designated bank branches. The interest rate on the PPF is linked to the market.
The PPF corpus is tax-free at all three stages. The investment is eligible for tax deduction under Section 80C. The interest earned is also tax-free, and so are withdrawals.
A PPF account matures in 15 years, but you can extend the tenure in blocks of five years after maturity.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
