Public Provident Fund
Public Provident Fund A public provident fund (PPF) account is an investment option that provides income tax deduction u/s 80C for the amount invested (subject to a limit of Rs 1.5 lakh a year). Interest received is exempt from tax and there is no tax on the amount received on maturity of the account either. Public Provident Fund ( PPF ) was introduced in India in 1968 with the objective to mobilize small saving in the form of an investment It can also be called a savings-cum-tax savings investment vehicle that enables one to build a retirement corpus while saving on annual taxes. Anyone looking for a safe investment option (backed by govt. of India) to save taxes and earn guaranteed returns should open a PPF account How Much One Can Earn From PPF? I f a person invest 1.5 lac (Maximum, Minimum is 500 rs/year) Per year and that to between 1st April to 5th April of every financial year one could earn 40.68 Lac (@7.1% interest) after 15 years. Detailed calculation is shown in b