Income Tax News: In India, the Public Provident Fund (PPF) is a fantastic investment choice. One can save a lot of money on taxes by doing this. But there are a lot of other factors as well, which contribute to its popularity in India. This information is relevant to you if you are considering making an investment in a tax-saving tool. Let’s investigate this.
Triple tax exemption
PPF offers triple tax exemption, meaning that all of your investments, earnings, and maturity income are totally tax-free.
Stability and Security
PPF, which is supported by the Indian government, provides consistent and alluring interest rates. As of January 2024, the current rate is 7.1% annually. Long-term, this may prove to be highly advantageous.
Long-term investment
The obligatory 15-year lock-in period encourages responsible saving and assists people in reaching long-term financial objectives like retirement.
Flexible Investment
Partial withdrawals from PPF are permitted after the 7th year. After the third year, a loan against the remaining sum can be obtained.
Create a PPF account in this way
You must have a savings account at a partnering bank or post office in order to open a PPF account online. In addition, you ought to have access to mobile or online banking services.
- Use the Internet Banking or Mobile Banking platforms to access your account.
- Select the option to “Open PPF Account.”
- Choose the “Self-Account” option if you’re creating an account for yourself. Alternatively, if you are opening an account on behalf of a minor, use the ‘Minor Account’ option.
- Complete the application form with the necessary information, making sure it is accurate.
- Indicate how much will be placed into the account overall for each fiscal year.
- send in your application. You will receive an OTP on the phone you registered.
- To confirm your identity, enter the OTP that you received.
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