Post Office 15-Year Public Provident Fund Account: Investment Return And Other Key Details

PPF or 15-12 months Public Provident Fund is one of the various forms of small financial savings schemes the government provides. A Public Provident Fund account offers a go-back of eight percent per annum at the gift, and the hobby is compounded on an annual foundation, in step with India Post’s website – indiapost.Gov.In. The PPF financial savings scheme also gives earnings tax blessings, including a deduction.

Post Office 15-Year Public Provident Fund Account: Investment Return And Other Key Details 1

Towards contributions under Section 80C of the Income Tax Act (a part of the general deduction limit of Rs. 1.5 lakh in a financial 12 months). Interest charge: The authorities critique the interest price relevant to every quarter of 15-12 months of the Public Provident Fund (PPF). For the area ending March 31, 2019, interest on PPF is paid at the fee of eight percent (compounded yearly), and the interest earned is tax-free, according to the post office internet site. (Also read: These published workplace financial savings schemes offer eight % interest.)


Maturity length: The Public Provident Fund account has a maturity length of 15 years.
Extension: After 15 years, the PPF account may be prolonged within 365 days of maturity for five years, consistent with India Post. Minimum contribution: A PPF account may be opened at the put-up office against the charge of Rs. One hundred, in line with India Post.

However, the subscriber is required to deposit at least Rs. 500 in a financial year inside the Public Provident Fund account, in keeping with the post office website. Maximum Investment: Investment of up to Rs. 1.5 lakh in a year is allowed in a PPF account. The deposits may be made in a lump sum or 12 installments. Premature withdrawal: One withdrawal is permissible each year from the seventh monetary year, in step with India Post. Sudden closure: An untimely closure isn’t allowed before the completion of adulthood. That means a PPF subscriber cannot close the account earlier than finishing the 15-year duration.

Income tax benefit: Investment in a PPF account qualifies for deduction from profits (to arrive at taxable profits) below Section 80C of the Income Tax Act. Nomination: The 15-12 months Public Provident Fund account comes with a nomination facility to be had at the time of opening the account and eventually. Transferability: A 15-year PPF account may be transferred from one post workplace to any other.

Isaac Moran
the authorIsaac Moran
I am a former professional trader who turned his focus from technical analysis to personal finance. In that journey, I learned how to manage a portfolio of stocks, bonds, and mutual funds. I started this blog to share my knowledge with others looking to gain control over their money.