Deposit in a PPF account qualifies for deduction under Section 80 C of Income Tax Act.
Public Provident Fund (PPF), a retirement planning-focused instrument, comes under "exempt, exempt, exempt" (EEE) tax status.
This means that the returns, the maturity amount and the interest income are exempt from income tax.
The scheme was introduced by the National Savings Organization in 1968 to mobilize small savings.
Individuals in their own name as well as on behalf of a minor can open the PPF account at designated bank and post office branches.
In such an account, a subscriber can deposit any amount between Rs 500 and Rs 1,50,000 in a financial year.