PPF: Triple advantage of Public Provident Fund— explained

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PPF account qualify for tax deductions under Section 80C of the Income Tax Act, providing additional financial benefits to investors. Third, it helps build a retirement corpus.The current PPF interest rate is 7.1%, which the government has maintained without alteration over recent years.

Individuals can initiate a PPF account at any bank or local post office, with a prerequisite deposit of at least ₹500 annually. The maximum allowable deposit into a PPF account is capped at Rs.

1.5 lakh. A PPF account matures after 15 years.PPF is an attractive investment option.

"Initially, it furnishes a secure and low-risk pathway for long-term savings, featuring a competitive interest rate compounded annually, and backed by government guarantee, thus assuring capital safety," remarked Edul Patel, CEO of Mudrex.Many Indians like to invest in the Public Provident Fund (PPF), which is known for helping people save on taxes and build up their retirement funds."Under Section 80C of the Income Tax Act, individuals can avail deductions of up to INR 1.5 lakh annually for their contributions to a PPF account," explained Dr Ravi Singh, SVP - Retail Research, Religare Broking Ltd."PPF investments boast remarkable tax efficiency," noted Edul Patel. "Contributions qualify for deductions under Section 80C of the Income Tax Act, interest earned remains tax-free, and the maturity amount enjoys tax exemption.

This blend of safety, favourable returns, and tax advantages positions PPF as the preferred choice for risk-averse investors seeking wealth accumulation and tax efficiency," he added.The PPF is a great way to save for retirement because it requires a 15-year lock-in period. This encourages long-term savings and takes advantage of the compounding