Few important things about PPF

As we all know that PPF(Public Provident Fund) account which is basically known for investing and saving tax under Section -80C.The things that are known to the people in general are that the maximum investment that can be done every year is 70,000/- and this is secure and the time frame for this account is 15 years.

Few things that are not known to all are as follows:

1. The tax saving limit under section 80c is 1 lakh and you can invest 1 lakh.For this you have to open account in the name of your spouse or chile.You can save 70,000/- in your account and 30,000/- in other account.

2.The time of 15years is excluding the FY in which you opened the account so intotal the time is 16 years.

3.After 16 years also you can continue with the same PPF account and the extension will be in the phases of 5 years each and you can get extension as many times as you want.

4.In case for few years you dont pay minimum 500/-which is to be paid every year ,your account is considered as inactive but you can get it activated by paying penalty of 50/- for the no. of years for which it remained inactive along with 500/- deposit.

5.If you keep on deposting 70,000/- every year till maturity period ,and as the deposit will attract 8% interest , so you end up getting 21 lakhs at the end of maturity period.

Happy Investing.