Everything You Need to Know about Public Provident Fund (PPF)

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Public Provident Fund or PPF is one of the best investment opportunities available for Indian residents. In addition to good returns, it offers Income Tax deductions as well. Here, we get into the complete details about PPF.

How is eligible to open PPF?


  • Resident Indian Individuals
  • Individuals on behalf of minors

What is the tenure of PPF?

It has a minimum tenure of 15 years and can be extended in blocks of 5 years.


What are the benefits of PPF?

  • Interest is fully exempt from Income Tax under Section 80C
  • Attractive interest rates
  • You can deposit as low as Rs. 500 and maximum of Rs. 150000 in one financial year. (1st April to 31 March)

When can I withdraw money from PPF?

Partial withdrawals are allowed before the completion of 15 years. You can withdraw up to 50% of balance in PPF account after completion of five years from the end of year in which subscription was made. This can be better understood with the help of an example. Suppose you opened your PPF account in December 2013 and thus, you are eligible for partial withdrawal from financial year 2018-2019. Withdrawals are also tax-free.


Can I open PPF account as Joint Holder?


No.

Where can I open PPF account?

You can open your PPF account in a designated bank or post office. Few banks also give you the facility to open it online as well.


If you have any questions related to PPF account, share with us in the comments.

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