The PPF account or Public Provident Fund scheme is one of the most popular long-term saving-cum-investment products, mainly due to its combination of safety, returns and tax savings. The PPF was first offered to the public in the year 1968 by the Finance Ministry’s National Savings Institute. Since then, it has emerged as a powerful tool to create long-term wealth for investors.
PPF has a 15-year maturity, and the facility to extend the tenure. With its attractive interest rates and tax benefits, the PPF is a big favourite with a small saver.
Loan facility is available from 3rd financial year upto 6th financial year. Withdrawal is permissible every year from 7th financial year.
Deposit qualifies for deduction under Sec.80-C of I.T Act . Interest earned in the account is free from Income Tax under Section -10 of I.T A.C.T .