6.

PUBLIC PROVIDENT FUND:

The Public Provident Fund (PPF) is a government-

backed savings scheme designed to promote long-term
savings and investment among Indian residents. Open to
both salaried individuals and self-employed individuals,
PPF offers attractive interest rates and tax benefits,
making it a popular choice for individuals seeking a
secure investment avenue. Key features of the Public
Provident Fund include a fixed maturity period of 15
years, which can be extended in blocks of 5 years
indefinitely. Contributions to PPF accounts are eligible
for tax deductions under Section 80C of the Income Tax
Act, providing investors with an opportunity to reduce
their taxable income. Additionally, the interest earned on
PPF accounts is tax-free, further enhancing the
attractiveness of the scheme. PPF accounts can be opened
at designated post offices or authorized banks, offering
accessibility to investors across the country. While PPF
offers stability and security, withdrawals from the account
are subject to certain conditions, such as partial
withdrawals allowed after completion of a specified
number of years. Overall, the Public Provident Fund
serves as a reliable instrument for long-term wealth
creation, retirement planning, and tax-efficient savings for
individuals across all income groups in India.