Public Provident Fund (PPF) is also considered very good for investment. In this, a better advantage can be achieved on long term investment. The maturity period of a PPF account is 15 years. Even after this, you have many options to make a profit from the deposit amount in this scheme. If no one is in urgent need of money, then even after maturity, he can benefit from the amount deposited in the PPF account. Learn about it.
How much can one invest?
PPF account can invest a maximum of Rs. 1.50 lakhs in a year. The government determines the interest rate in this account, which varies from time to time.
Every year investment of up to Rs. 1.50 lakh in PPF account is exempted from tax. Not only this, the PPF account comes under the EEE (exempt-exempt-exempt) category. There is no tax of any kind on the money received on maturity.
You can increase the account further, if you do not need money immediately, you can increase the account even after maturity. To proceed with PPF account, one has to submit the form within the year. It is for a period of 5 years. At 5-5 years, you can extend the account and continue investing as long as you want.
It will continue without deposit even in the account PPF, it is a default option. Under this option, the PPF account remains active even after maturing. If the account holder does not choose any other option, then the period of PPF maturity is increased for the next five years. There is no need to submit any form of this.
Option to close on maturity
If your PPF account has matured, you can close it and withdraw money. It gets full principal money and interest deposited in it. To transfer this amount to a savings account, a special form has to be submitted to the bank or post office.