Public Provident Fund (PPF) is a long-term savings scheme offered by the Government of India. It is one of the most popular tax-saving investment options under Section 80C of the Income Tax Act.
Key Features
- Lock-in Period: 15 years. Can be extended in blocks of 5 years.
- Minimum Investment: ₹500 per financial year.
- Maximum Investment: ₹1.5 Lakh per financial year.
- Tax Benefits: EEE status (Exempt-Exempt-Exempt). Investment, Interest, and Maturity are all tax-free.
- Risk: Risk-free as it is backed by the Government of India.