PPF rules: Withdrawal, loan facilities explained in 10 points2 min read 17 Nov 2018, 10:29 AM IST
PPF withdrawals are tax-free. Loans can also be obtained against PPF deposits.
The PPF, or public provident fund, is one of the most popular investment options for tax savings and accumulating long-term wealth. PPF, a 15-year investment scheme, can be extended in blocks of five years. It also offers partial withdrawal and loan facility. In terms of income-tax implications, the PPF offers the exempt, exempt and exempt advantage: money invested up to ₹ 1.5 lakh in a financial year, interest earned and the maturity proceeds are not taxable in the hands of the investor. The interest rate on the PPF, like other small saving instruments, is revised every quarter. For the current quarter (October-December), investors will earn interest at 8%.
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