After retirement, everyone needs a regular income to manage their expenses properly. Salaried people get the benefit of pension facility after retirement. But, those working in the unorganized sector do not get the benefit of any such facility.
If you also fall in the category of workers in the unorganized sector and are planning your retirement, then Indian Post’s PPF (Public Provident Fund) scheme can prove to be the best way for you to take advantage of pension. Let us know about this scheme.
Who can open his account
Under the PPF scheme of India Post, any Indian citizen who is above 18 years of age can open his account and can avail pension facility after retirement. Apart from this, the account of a minor person can also be opened by the guardian in this scheme of the post office.
Under this scheme of post office, any person can open his account with a minimum of Rs 500 in a year. At the same time, under this scheme, you can deposit a maximum amount of Rs 1.50 lakh. Under this scheme, the depositor also gets the benefit of tax exemption under section 80C of the Income Tax Act.
The maturity period under this is up to 15 years. However, the year of account opening is not counted in the maturity period under this scheme.
Rate of interest
At present, under the PPF scheme of the post office, the benefit of 7.1 percent interest rate is available annually. This interest is credited to the depositor’s account at the end of every financial year. Apart from this, the interest earned under the PPF scheme is also outside the income tax net.