If an individual is planning to make an investment must be aware of the 15-year Public Provident Fund Account (PPF) at India Post.
Post Office Savings Scheme 2021: If an individual is planning to make an investment must be aware of the 15-year Public Provident Fund Account (PPF) at India Post. One can get a good return on this scheme as it offers 7.1 per cent interest per annum (compounded yearly). In case of further details, the interested individuals can login to the official website of India Post at indiapost.gov.in.
The interested individuals must note that one can invest from Rs 500 to Rs 1,50,000 in a financial year for this PPF and the deposits can be made in lump sum or investments. Any adult who is an Indian citizen can open this PPF account. In case of a minor or someone who is not of sound mind, the guardian is allowed to open this account.
The interested individuals must also remember that under Section 80C of the Income Tax Act, one can benefit from a tax exemption on the PPF account. The interest and maturity income earned in this account is tax-free as well.
Upon the maturity of this account, there are certain options that a depositor can resort to. They are as follows:
1) Can take maturity payment by submitting account closure form along with passbook at concerned Post Office
2) Can retain maturity value in his/her account further without deposit, the PPF interest rate will be applicable and payment can be taken any time or can take 1 withdrawal in each FY.
3) Can extend his/her account for further block of 5 years and so on (within one years of maturity) by submitting prescribed extension form at concerned Post Office.
Now, in case of withdrawals, the interested individuals must know these following points:
1) A subscriber can take 1 withdrawal during a financial after five years excluding year of account opening.
2) Amount of withdrawal can be taken up to 50 per cent of balance at the credit at the end of 4th preceding year or at the end of preceding year, whichever is lower.
In case of further details, the interested individuals can login to the official website of India Post at indiapost.gov.in.
