The Employees Provident Fund (PF) 1952 is to sanction a type of social security to the employees. This particular Act is applicable for every employee who works in a factory or any other establishment whether organized sector or un-organized one, wherein they get welfare such as medical care, housing, retirement… Continue reading
It is a traditional scheme of the Government of India often used by tax payers to save tax up to 1,50,000 INR u/s 80c of the Income Tax Act. The lock in period of the scheme is as long as fifteen years and can be extended in block of five… Continue reading
Before we deep dive into the analysis, it suffices to say that PPF is one of the best fixed income investment choices under Section 80C. The tax treatment of PPF makes the returns more attractive relative to other fixed income investments under Section 80C (like NSC, PO time deposits, tax… Continue reading
The tenure of PPF is 15 years and is extendable in blocks of 5 years. While liquidity of PPF is lower than other tax saving fixed income investments, PPF does offer limited liquidity options through withdrawals and loans, during the term of the investment. Withdrawals not exceeding 50% of fourth… Continue reading
Both PPF and ELSS have their merits and demerits. Your investment choice should be informed by your investment objectives and your risk tolerance level. Your risk tolerance level is based on several factors (discussed in our article Measuring Risk Tolerance of Investors). Age and financial situation are certainly two important… Continue reading
The Public Provident Fund (PPF) is one of the most popular tax-saving schemes. It can also be a very good investment option for retirement planning and but many of us treat it as just a tax-saving tool. Till the accounts department sends us a reminder for furnishing tax-saving documents, we… Continue reading
The key to wealth creation lies in the practice of saving regularly and systematically. The public provident fund (PPF) is one such long-term investment option that would suit investors of all types. Scoring high on safety, by virtue of it being government backed, this wonderful option comes with tax benefits,… Continue reading
The rules applying to HUF’s PPF accounts have been modified with effect from May 2005. While earlier an HUF could open a PPF account and save tax on the deduction, this has now been stopped. The rule states that: “As per GSR 286(E) dated 13.5.2005 circulated vide SB Order 10/2004… Continue reading
It’s very important to ensure that you have a nominee on your PPF account, who in the event of your death will receive the PPF corpus. You can nominate one or more persons to receive the amount standing to your credit in the event of your death. Use Form E… Continue reading
Yes, this is true. Considering that your child is a minor, you as the parent / guardian are not entitled to dual exemption of up to Rs. 2 lakhs, the exemption limit remains at Rs. 1 lakh for a minor child. However, if you open an account in your spouse’s… Continue reading