Know these 10 things before investing in PPF, it will keep you in profit

PPF investment know these ten rules to maximize your return

New Delhi, Business Desk. PPF, which stands for Public Provident Fund, is a popular long-term savings scheme included in the government's small savings schemes. Not only does it offer higher returns compared to fixed deposits in most banks, but it also provides tax benefits, allowing you to avail tax deductions of up to 1.5 lakh rupees. Moreover, the proceeds received upon maturity are also tax-free. From October to December quarter, PPF is currently offering an interest rate of 7.9 percent. It's worth mentioning that a PPF account matures in 15 years.
If you are considering investing in PPF, there are some things you should know to maximize your benefits. Firstly, you cannot open a joint PPF account.
A parent or guardian can open a PPF account in the name of a minor child as a guardian. However, if the parent already has a PPF account, they can only invest a maximum of 1.5 lakh rupees in both accounts combined in a year.
If the income contributed to the PPF account of a minor child comes from the parent or guardian, they can avail tax deductions under section 80C of the Income Tax Act.
When a minor child turns 18, an application must be submitted to convert the account from minor to adult. Now, the parent or guardian who opened the PPF account in the child's name needs to verify the signature of the adult child. After this, the adult child can manage the account themselves.
Non-resident Indians (NRIs) cannot open a PPF account. However, if an NRI opened an account before becoming a non-resident, they can continue to maintain it.
Interest on a PPF account is calculated from the 5th of each month to the end of the month. If you want to earn more interest on your PPF account, deposit money into your account by the 5th of each month.
You can make partial withdrawals from your PPF account after the completion of the seventh financial year. Interestingly, no tax is applicable on the proceeds received from partial withdrawals. Even after 15 years, if you choose to keep your PPF account active without making any withdrawals, you can still make partial withdrawals.
If you want to keep your PPF account active even after 15 years without making any withdrawals, you can do so. However, if you want to continue contributing to your PPF account after 15 years, you will need to submit Form H.