Thursday, March 12, 2015

PUBLIC PROVIDENT FUND (PPF)


PUBLIC PROVIDENT FUND (PPF)
• Option to continue after maturity for every 5 years.
• Investment: Mm. 500; Max : 1.5 lac p.a.
• Int. @ 8.7% compounded annually.
• Can withdraw 50% of the balance from 7th year onwards.
• An amount equal to withdrawal can be invested from current year’s income to make the account a self sustaining one.
• Loan upto 25% of balance available (2 years ago) is allowed upto the end of 5th year.
• Second loan is given after clearing the first loan.
• No loan is given after 6 years from the date of first subscription.
• After 15 years entire balance can be withdrawn.
• Interest earned is totally exempt u/s 10(11).
• Tax Exemption : lnvest uptoRs.1,50,000 qualifies for deduction u/s 80C.