PPF Limit|Know all About PPF Limit|Coverfox (2024)

FAQs

What is the total limit of PPF? ›

PPF Deposit limit starts from a minimum of 500 rupees and a highest of 1.5 lakhs rupees per year, with a maximum of 12 contributions per calendar year.

The maximum amount that you can invest in your PPF account in a financial year is Rs. 1.5 lakh. Any amount beyond that will not earn any earning interest and would not be eligible for deductions under Section 80C of the Income Tax Act, 1961.

Investors use the PPF as a tool to build a corpus for their retirement by putting aside sums of money regularly, over long periods of time (PPF has a 15-year maturity, and the facility to extend the tenure). With its attractive interest rates and tax benefits, the PPF is a big favourite with a small saver.

How to Maximize PPF Returns? Invest before the 5th of every month. PPF interest is calculated on the lowest balance between the 5th and last day of every month. For instance, if you deposit Rs 10,000 on 2nd Jan and another Rs 10,000 on 15th Jan, the interest will only be calculated on Rs 10,000 and not Rs 20,000.

One can deposit money into a PPF account a maximum of 12 times in a year. Do remember to deposit before the 5th of the month to get interest for the full month, as the interest is allowed on the lowest balance at the credit of an account from the close of the 5th day and the end of the month.

PPF is one of the most popular government-backed savings schemes in India because of its guaranteed returns and tax benefits. PPF has a maturity period of 15 years after which you can choose to withdraw funds from your PPF account.

You cannot deposit more than Rs. 1.5 lakhs in the PPF Account in any given financial year. The deposit frequency, however, is not limited. Earlier, the PPF account max deposit was twelve times in one financial year.

Also, an individual can have only one account in his name. Where to open: You can open a PPF account at a post-office or a bank like the HDFC Bank, and you can do it online or offline.

Yes, an NRI can have a PPF account in India. However, the PPF account must have been opened while the person was still a resident of India. An NRI can only have a PPF account if they opened it as an Indian resident and prior to becoming an NRI.

PPF as a Pension Tool

As far as the different pension plans or annuity products are concerned, the pension income is taxed according to the income tax slab. But, in the case of PPF, there is no tax to be paid. Thereby, it can be considered better than other pension schemes/plans.

Is PPF really worth it? ›

Yes. PPF is worth every cent. It's a transparent protective film that covers any painted surface of your vehicle's exterior, reducing the risk of paint damage. If you recently purchased a car, you'll most likely come across paint protection films or ceramic coatings as options to protect your car's paint.

The extended tenure of 15 years for PPF plays a significant role in amplifying the impact of compounding, particularly in the later stages of the investment period. Further, because the interest earned is backed by a sovereign guarantee, it makes it a safe investment option.

Treated as a pension plan: PPF account is often treated as a good pension product. Unlike other pension plans where pension income is taxable, the interest earned on the PPF Account and the returns are not taxable.

If you are looking for a low-risk investment option with a guaranteed return and a shorter time horizon, a fixed deposit might be a better option. If you are looking for a long-term investment option with the potential for higher returns, a Provident Fund might be a better option.

According to the PPF scheme, the interest in the PPF account is calculated based on the lowest balance in the PPF account between the 5th of every month and at the end of month. So if PPF investors are making a lumpsum payment for the financial year, it must be done before April 5 to maximise the earnings.

How many PPF accounts can be opened by a single person? A person can only have one PPF account, as per the existing rules. There is a limit of one PPF account per person.

Yes you can. Earlier, you could deposit funds in your PPF account only twelve times during a financial year. However, per the new PPF rules, there is no restriction on the number of deposits. You can deposit funds in multiples of Rs 50, but, per usual, your maximum annual deposits cannot exceed Rs 150,000.

Yes, an NRI can have a PPF account in India. However, the PPF account must have been opened while the person was still a resident of India. An NRI can only have a PPF account if they opened it as an Indian resident and prior to becoming an NRI.

Investment Limits A minimum of Rs.500.00 subject to a maximum of Rs.1,50,000 per annum may be deposited. Original duration is 15 years.