About Public Provident Fund (PPF) Scheme:
- The PPF Scheme is a very popular long-term savings scheme in India because of its combination of tax savings, returns, and safety.
- The PPF was first offered to the public in the year 1968 by the Finance Ministry’s National Savings Institute.
- Objective: To help individuals make small savings and provide returns on the savings.
- It is one of the safest investment products. i.e., the government of India guarantees your investments in the fund
- Tenure: 15 years (Can be renewed in blocks of 5 years).
- Interest rate: Interest rates currently payable on such accounts stand at 7.1%.
- Investment Amount: Minimum Rs.500, Maximum Rs.1.5 lakh p.a.
- Who is eligible for a PPF account? Any Indian citizen can open a PPF account.
- The PPF accounts cannot be held jointly, though you can make a nomination.
- Investment in PPF is tax-exempt under section 80C of the Income Tax Act (ITA), and the returns from PPF are also not taxable.
What is Sukanya Samriddhi Yojana?
- It was launched on 22 January 2015.
- Aim: Betterment of the girl child in the country by abolishing sex determination, gender discrimination, protection of girls, and higher participation of girls in education and other fields.
- Features of Sukanya Samriddhi Account:
- Minimum deposit ₹ 250/- Maximum deposit ₹ 1.5 Lakh in a financial year.
- Account can be opened in the name of a girl child till she attains the age of 10 years.
- Only one account can be opened in the name of a girl child.
- The account can be opened in Post offices and in authorised banks.
- Withdrawal shall be allowed for the purpose of higher education of the Account holder to meet education expenses.
- The account can be prematurely closed in case of marriage of girl child after her attaining the age of 18 years.
- The account can be transferred anywhere in India from one Post office/Bank to another.
- The account shall mature on completion of a period of 21 years from the date of opening of the account.
- Deposit qualifies for deduction under Sec.80-C of I.T.Act.
- Interest earned in the account is free from Income Tax under Section -10 of I.T.Act.
