PPF Meaning and
Definition
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PPF stands for the Public Provident Fund. It is a long-term investment, savings, and tax-saving scheme offered by the Government of India. The PPF scheme was introduced in 1968 with the objective of encouraging individuals to save for their retirement and provide them with financial security. It is managed by the Ministry of Finance's Department of Economic Affairs and is available at post offices and authorized banks across the country.
The PPF operates as a deposit account with a fixed maturity period of 15 years, with an option to extend it for another 5 years. This scheme offers individuals an opportunity to invest their funds and earn attractive interest rates, which are determined by the government and are subject to change. The interest rates are compounded annually, further enhancing the returns.
Under the PPF scheme, individuals can invest a minimum of Rs. 500 and a maximum of Rs. 1.5 lakh per financial year. The contributions made towards PPF are eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the interest earned and the maturity amount are both exempt from tax, making it a highly popular tax-saving investment avenue.
The PPF scheme offers flexibility, as individuals can make partial or full withdrawals after the completion of 5 years, subject to certain conditions. There is also an option to take a loan against the PPF account after completing 3 years in the scheme.
Overall, the PPF scheme is a secure and tax-efficient investment option in India, providing individuals with long-term financial stability and retirement benefits.
Common Misspellings for PPF
