Have you put money in PPF Scheme? Be careful, your account will be closed!
PPF Scheme : The government runs many schemes for the benefit of the people. Steps are being taken for the benefit of the people through these schemes. People can save and invest through these schemes. One such scheme is the Public Provident Fund (PPF). Through this scheme, people can avail tax deductions along with savings and investments. However, if investing in this scheme, people should keep one thing in mind, otherwise they may face problems.
PPF scheme is a long term plan. Maturity benefits are available in this scheme after 15 years. In such a situation people have to invest money in it every year. Currently, interest is paid at the rate of 7.1 percent on investments in PPF accounts. However, if a person does not invest in the scheme in any financial year, he may face difficulties and the PPF account may become inactive.
Minimum & Maximum Deposit in PPF Scheme
In fact, people investing in PPF schemes should keep in mind that a maximum of Rs 1.5 lakh can be invested in PPF schemes in a financial year. However, people are required to invest a minimum of Rs 500 in the PPF account in a financial year. In addition, tax benefits up to Rs.1.5 lakh can also be availed through this scheme under Section 80C of the Income Tax Act of the old tax regime while filing ITR.
If a person does not invest Rs 500 in a PPF account in a financial year, then people may have to bear a lot of losses as the account becomes inactive and the interest earned in the PPF account is also affected. Also, you may have to pay a fee to reopen the account. In such a situation, people must deposit a minimum investment amount in the PPF account every financial year.
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