Opening a Public Provident Fund (PPF) account is a wise financial decision for many individuals. However, before diving into this long-term commitment, there are several crucial aspects to consider. Here’s a comprehensive guide to help you navigate the intricacies of PPF accounts.
Understanding PPF Accounts
What is a PPF Account?
A PPF account is a popular long-term investment option in India that offers attractive interest rates and tax benefits. It is backed by the Indian government and falls under the purview of the Ministry of Finance.
Key Features of PPF Accounts
- Long-term Investment: PPF accounts have a maturity period of 15 years, making them ideal for long-term savings goals. Investors can make regular contributions towards their PPF account over this period.
- Tax Benefits: Contributions made to a PPF account are eligible for tax deductions under Section 80C of the Income Tax Act. This provides investors with an opportunity to reduce their taxable income and…