You can easily activate your PPF online by going to the portal of your favorite bank or post office.
New Delhi: The Public Provident Fund, or PPF, is a popular investment scheme for investors who want to invest for a longer period of time but want to take on less risk. Money is deposited into a PPF account every month and interest is accrued. The scheme is mandated by the government and therefore comes with a guaranteed return.
Can you open more than one PPF account under the same name?
The answer is no. You can only open one PPF account in your name.
How do you open a PPF account?
You can easily activate your PPF online by going to the portal of your favorite bank or post office. When activating a public provision fund account, the following documents must be submitted:
1. Documents proving the identity of a person, such as Aadhaar, voter’s certificate, driver’s license, etc.
2. PAN card
3. Proof of residential address
4. Form of nominee statement
5. A passport photo
PPF Tax Benefits:
Under section 80C of the Income Tax Act of 1961, the entire PPF investment value can be claimed as a tax exemption. However, please note that the maximum amount of principal that can be invested in a single financial year is Rs. 1.5 lakh.
In addition, the total interest earned on PPF investments is not subject to tax calculation.
Loan Against PPF Account:
According to a report in Grow, you can get a loan between the third and fifth years of your PPF account.
A maximum of 25% of the amount of the second year that fell just before the application year of the loan may be borrowed.
For the sixth year, a second loan can be taken out if the original loan has been fully repaid.
What is the minimum and maximum investment in PPF?
The minimum amount you can start investing in PPF is Rs. 500 per annum and the upper limit goes to Rs. 1,50,000 a year.