Winning Bizness Desk
Mumbai. With new avenues coming in the market, nowadays people have got many investment options as per their needs. If you want to get maximum returns in a short time, then investing in the stock market can be a good option. But it also involves more market risk. Even today, a large number of people in the country prefer to invest money in investment schemes without any investment risk. So, if you also want to get more returns in the long term by making a small investment, then PPF or Public Provident Fund Scheme is a great investment option for you.
Benefit of 80C of Income Tax
By investing in this scheme, you get an annual exemption of up to Rs 1.5 lakh under Section 80C of Income Tax. Under this scheme, interest rate is available on the basis of compounding of 7.1 percent every year. In this scheme, you get the facility to invest for 15 years. Along with this, there are 3 types of options available to withdraw money on maturity.
1) Full money can be withdrawn on maturity
Let us tell you that under the Public Provident Fund Scheme, you can invest money in this scheme for 15 years. After investing money in this scheme for 15 years, you can withdraw the entire money on maturity. Under this scheme, all the money received on maturity is tax free. To withdraw under this scheme, you have to fill a form by going to the post office. Along with this, you will have to give your ID. After this you can withdraw money from the account.
2) PPF investment can also be extended for 5 years
In the Public Provident Fund scheme, the government also gives investors the facility to increase their investment for 5 years. In such a situation, after completion of 15 years, you can increase your investment limit up to 5 years. You can continue investing further in the money deposited in it. You will have to submit the maturity form to continue with the investment. Along with this, if you want in these 5 years, you can also withdraw money.
3) Option to extend only account period
Notably, PPF account does not get deactivated even after maturity which means that there is no penalty of any kind even if the money is not withdrawn and deposited. With this, your investment is extended for 5 years. You do not need any kind of investment in this and you keep getting interest on the money deposited in the account.
