INSUBCONTINENT EXCLUSIVE:
Even during the extended period, partial withdrawals are allowed from PPF accounts.Public Provident Fund (PPF) is possibly one of the best
among small savings schemes because the entire income that you earn on it is tax-free
However, PPF accounts offer tax benefits
While the maturity period of a PPF account is five years, it can be extended for another five years
You may choose to extend it for another five years if you do not have an immediate fund requirement
Even during the extended period, partial withdrawals are allowed from PPF accounts.(: 10 Investment Options That Can Make Money For You This
Diwali)What is PPF accountPPF accounts require you to make 12 periodic or lump sum investments of up to Rs 1,50,000 in a financial year
PPF comes under the exempt, exempt, exempt (EEE) category of tax status
This means that returns, maturity amount and interest income are exempt from income tax
The entire investment provides you income tax benefit under Section 80 C of Income Tax Act, 1961.Interest rate on PPF account:For the
quarter ending December, PPF accounts will fetch return at the rate of 8 per cent per annum.Benefits of extending PPF accounts for five
years:If you choose to extend PPF account for five years, you need not make any further investment
The maturity value can be retained without extension and without further deposits.You can make partial withdrawals
However, these are subject to once a year.(: Five Investment Ideas That Guarantee Assured Returns)"Extension of PPF account is attractive -
considering its slightly higher rate of return - regardless of your tax bracket
Even if you come under zero tax bracket, PPF extension is attractive," said Ramalingam K, director and chief financial planner at
Chennai-based Holistic Investment Planners (www.holisticinvestment.in).
