PPF or Public Provident Fund is one of the most popular saving schemes among Indian households. Since it’s managed by the Central Government, the money in the PPF account and the returns it generates are guaranteed.
PPF, along with other small saving schemes like the Senior Citizens Savings Scheme (SCSS), the Sukanya Samriddhi Scheme, and the National Savings Certificate (NSC), was launched by the Government to benefit small savers. With a minimum investment of only Rs 500 per financial year, PPF is a clear choice for those looking for safe and guaranteed returns.
PPF also offers the best tax benefits as it falls under the Exempt-Exempt-Exempt (EEE) category. This means that first, the money invested in PPF in a financial year gets exempted from an individual’s taxable income (Under Section 80C) for that year. Also, the interest earned on PPF deposits along with the accumulated amount doesn’t have any tax liability.
The interest rate for PPF is set and paid by the government for every quarter. PPF interest rate for the first quarter of the year 2021-22 i.e. from 1st July to 30th September 2021 has been fixed at 7.1%.
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