The main advantage of Public Provident Fund is safety of fund. The 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.
PPF also provides great returns at present the rate of interest is8.1% compounded annually. Now the government announces the rate quarterly previously it was once a year.
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 is exempt from all types of Wealth Taxes.