Public Provident Fund: If you are an account holder of the Public Provident Fund scheme, then this news is of use to you. Before March 31, it is very important for Public Provident Fund account holders to make minimum investment in their account.
Failure to do so may result in financial loss to you. Actually, as soon as the month of March starts, the deadline of many financial works comes closer. If you are a PPF account holder and have not deposited money in the account at one go in this financial year, then settle this work today itself. Failure to do so will result in your account being deactivated.
How much investment is required
Under the Public Provident Fund Scheme, every account holder is allowed to invest from Rs 500 to a maximum of Rs 1.5 lakh in a year. You can claim the money deposited in this scheme for tax exemption under section 80C of Income Tax. If you have not invested even a single rupee in this scheme in the whole year, then do this work today itself.
Otherwise after 31st March your account will be deactivated. To activate it again, you will have to pay a fine of Rs 50 per year. You can activate this account up to 15 days before maturity. After the maturity of the account it cannot be activated.
This much interest rate is available in PPF account-
Public Provident Fund is a small savings scheme run by the government, in which you can invest for 15 years and get a hefty fund on maturity. Every citizen of the country can invest in this. Investments can be made in this account for 15 years. After maturity, you can extend your investment limit for 5 years. On investing in this account, the account holders get an interest rate of 7.1 per cent.
Loan is available against the amount deposited in PPF account
Account holder loan facility is also available against the amount deposited in PPF account. After investing in PPF for three consecutive years, you can get up to 75 percent of the total amount deposited in the account as a loan. At the same time, after investing in the account continuously for 6 years, the facility of partial withdrawal is available.
Withdrawal from PPF account before maturity can be done only on the condition that you need money in emergency. You can withdraw from the PPF account for the treatment of your family or your own illness, children’s education and marriage expenses.