There are many advantage of PPF Account and in this article i shall explain these advantages of PPF account to you.
Safety of Fund:
Among the many advantages of PPF Account, the main advantage is safety of fund. The Public Provident Fund (PPF) scheme is governed by the Public Provident Fund act 1968, an act of Indian parliament, hence make it one of the safest savings instrument available in the market.
PPF also provide double tax benefit. You can claim tax rebate under section 80C of Income Tax Act to the tune of your investment in PPF in a financial year. At present the tax benefit under Section 80C of IT Act is 150,000/-. The interest earned in your PPF account is also tax free. So by investing or savings in PPF Account you are eligible for double tax benefit.
Good Return & Annual Compounding:
PPF also provides great returns and compounded annually. Now the Government of India revises the rate of interest at quarterly intervals, previously it was once a year.
Freedom of Investment:
With PPF you can enjoy the Flexibility and freedom of Investment. You can invest as low as Rs. 500/- to keep the account running and upto Rs.1,50,000 in a financial year. You can also have the freedom of investing in PPF through a systemic investment plan.
The Corpus accumulated under PPF scheme is exempt from all types of Wealth Taxes.
In case of any contingencies and life threatening events, a subscriber can prematurely close his/ her PPF Account.
In case of need, a subscriber of the scheme can raise loan against the corpus of their PPF account.