How to make the most of your PPF account
Beyond income tax and compounding benefits, PPF account offers the facilities like loan, partial withdrawal and account extension.
The government has retained the 8% interest rate on the popular PPF or Public Provident Fund (PPF) for the January to March quarter, making it an attractive investment for conservative investors. Apart from tax benefits, the PPF also helps build a sizeable corpus for long-term goals like retirement. Being a 15-year-old savings scheme, the PPF provides the benefit of compounding over a long period. In terms of income tax implications, the PPF has an EEE or ‘exempt, exempt, exempt’ status, meaning that it provides subscribers with deduction benefit up to ₹ 1.5 lakh under Section 80C on deposits and tax-free interest and returns.