PPF : A must read
Unlike many instruments, where you need to take your money after maturity or reinvest the proceeds at the prevailing interest rate, Public Provident Fund (PPF) offers you some flexibility. PPF is a 15-year instrument and arguably India’s best fixed income investment. Your contributions earn you income-tax deduction benefits under Section 80C, up to an investment of Rs 1.5 lakh. Interest and redemption too are tax-free. But what do you do with your PPF account once it complete 15 years? If you do not need the PPF money for a few years more, it’s best to extend the account maturity by 5 more years. In fact those who are earning well can also choose the Extension-With-Contributions option. But that’s not your only option. Let us look at how people with different requirements must decide what to do with a maturing PPF account. Before we discuss that in detail, let’s first have a look at what all options are available. Broadly, there are three options: Close the PPF account Take...