PPF - Public Provident Fund - Tax-free Saving Tool in India
What is PPF? A voluntary savings instrument in India to mobilize small savings in India over a period generating tax free interest returns to the person. Thus this provides a mechanism to self-employed professionals to save for retirement needs. The guarantee by the Central Government also adds to the low risk nature of this fund. Who can Open/ Eligibility? Only a resident individual can open a PPF account . A minor individual can open with the help of a legal guardian Non-resident Indians are not allowed to open a PPF account. However existing PPF accounts can be continued to be operated if a resident becomes non-resident.( Though such balance cannot be taken out of the country) Restrictions Only one PPF account can be held by any individual . Lock-in period Original tenure of 15 years. This can be extended by 1 or more blocks of 5 years each. Funds cannot be withdrawn during such lock-in period until maturity . However partial withdrawal is allowed...