3. • Provident Fund
– Small portion of the employees salary which is
deducted and deposited with the government PF
office and at the time of retirement it is paid as a
lump sum to help the employee to lead his life
peacefully in spite of retirement and loss of
monthly income.
• Public Provident Fund
– Savings cum tax saving instrument. It also serves
as a retirement planning tool for many of those
who do not have any structured pension plan.
4. Features
• Ideal investment option for both salaried as well
as self employed classes residents of India only.
• The account can be opened in designated post
offices, State Bank of India branches and
branches of some nationalized banks.
• The maturity period of the account is 15 years.
• Minimum investment in PPF is Rs 500 and
maximum is Rs 1,00,000 in a financial year.
• Investment up to INR. 1,00,000 per annum
qualifies for IT Rebate under section 80 C of IT
Act.
5. • The rate of interest on the subscriptions made
to the fund is 8.70% per annum.
• Loan facility available from 3rd financial year
upto 5th financial year and the rate of interest
charged on it is 2%.
• Withdrawal permitted from 6th financial year.
• Non-Resident Indians (NRIs) are not eligible
for PPF.
7. • To have the cake and eat it too is a popular
figure of speech, which is true when it comes
to NSC investments. You can have the best of
both the worlds, with assured returns and tax
benefits on invest.
8. • National Savings Certificate
– National Savings Certificates (NSC) are certificates
issued by Department of post, Government of
India and are available at all post office counters in
the country.
• Types of NSCs
– NSC VIII Issue
– NSC IX Issue
9. NSC VIII Issue
• Scheme specially designed for Government employees,
Businessmen and other salaried classes who are
Income Tax assesses.
• No maximum limit for investment.
• No Tax deduction at source.
• Certificates can be kept as collateral security to get
loan from banks.
• Investment up to INR 1,00,000/- per annum qualifies
for IT Rebate under section 80C of Income Tax Act.
• Trust and HUF cannot invest.
• Rate of interest 8.50%.
• Maturity value of a certificate of INR.100/- purchased
on or after 1.4.2012 shall be INR. 151.62 after 5 years.
10. NSC IX Issue
• No maximum limit for investment.
• Minimum INR. 100/- No maximum limit available
in denominations of INR. 100/-, 500/-, 1000/-,
5000/- & INR. 10,000/-.
• A single holder type certificate can be purchased
by an adult for himself or on behalf of a minor or
to a minor.
• Rate of interest 8.80%.
• Maturity value of a certificate of INR.100/-
purchased on or after 1.4.2012 shall be INR.
236.60 after 10 years.
