2. INTRODUCTION
7 MUST KNOW FACTS ABOUT PPF
FEATURES OF PPF
WHO SHOULD INVEST & WHO SHOULD NOT INVEST
PPF UPDATED AS PER NEW RULES
ADVANTAGES OF PPF
DISADVANTAGES OF PPF
RECOMMENDATION
3. STATURORY SCHEME OF THE CENTRAL
GOVERNMENT OF INDIA
THE SCHEME IS FOR 15 YEARS
LONG TERM INVESTMENT OPTION THAT SUITS ALL
INVESTORS
HIGH ON SAFETY
COMES WITH TAX BENEFITS,LOAN OPTIONS AND A
LOW MAINTENANCE COST
4. IT REQUIRES JUST Rs. 100 TO START A PPF A/C
PPF A/C HAVE A MINIMUM & MAXIMUM DEPOSIT LIMIT
INTREST CALCULATION IN PPF A/C
PREMATURE WITHDRAWAL FROM PPF
PPF OFFERS MULTIPLE TAX BENEFITS
NEED A LOAN? USE YOUR PPF
CONTINUING PPF AFTER THE 15 YEAR PERIOD
5. Here is an example to demonstrate the returns
on your PPF. The assumed interest rate is 8%
(compounded annually) and the investment is
12000/- Rupees per year for 15 years.
7. As you can see, an investment of 12000 /-
Rupees per year for 15 years has grown into
3, 51,891 /- Rupees (1, 80,000 Rupees was the
total amount invested and the rest is interest
accrued.)
8.
9. YOU SHOULD CONSIDER INVESTING IN PPF
IF :-
YOU WANT A STABLE CORPUS FOR RETIREMENT AND
ARE RISK-AVERSE i.e. DON’T WANT TO INVEST IN
EQUITY
YOU WANT TAX EXEMPTIONS UNDER SECTION 80C
YOU ARE A NON-SALARIED/BUSINESS PERSON
10. PPF IS PROBABNLY NOT FOR YOU IF YOU
ARE :-
IF YOU ARE YOUNG YOU SHOULD INVEST IN EQUITIES. IN
THE LONG RUN, RETURNS FROM EQUITIES BEAT
EVERYTHING
YOU ARE NOT ELIGIBLE FOR TAXATION. (YOU WON’T NEED
THE TAX BENEFITS)
11. INTEREST 8.6% p.a. (COUMOUNDED ANNUALLY)
MIN AMOUNT : RS.5OO & ADDITIONAL INVESTMENT IN MULTIPLES OF
Rs.5. MAXIMUM Rs.1,00,000
A PPF A/C CAN BE OPENED ANYTIME THROUGH OUT THE YEAR
NOMINATION CAN BE DONE AT THE TIME OF OPENING THE A/C OR
DURING THE TENOR OF THE ACCOUNT
ADDITIONAL BLOCK OF 5 YRS CAN BE EXCERCISED AFTER MATURITY (15
YRS) ALSO
12. FIRST LOAN CAN BE TAKEN IN THE 3RD FINANCIAL YEAR FROM
THE DATE OF OPENING THE A/C
LOAN TAKEN BY THE SUBSCRIBER OF PPF A/C AFTER 01.12.2011
WILL B CHARGED 2% p.a. {PREVIOUSLY 1% p.a.}
TAX BENEFIT CAN BE AVAILED UNDER SECTION 88
THE A/C CAN BE TRANSFERRED ON REQUEST (INCLUDING BANK
TO POST OFFICE)
NON-RESIDENT CANALSO OPEN PPF A/C IN BANKS{NON-
RESIDENT ACCOUNT}
13.
14.
15. EXCELLENT WAY TO GET TAX EXEMPTIONS {UNDER SECTION
80C}
INTEREST RATE IS HIGH COMPARED TO OTHER DEBT
INSTRUMENTS LIKE FIXED DEPOSITS {BECAUSE THE INTREST
EARNED BY YOU WILL BE TAX FREE}
NEGLIGIBLE RISK OF DEFAULT {BACKED BY GOVT. OF INDIA}
EXCELLENT TOOL FOR RETIREMENT PLANNING {ESPECIALLY
FOR NON-SALARIED PERSON}