InvestorQ : Can I use PPF(Public provident fund) account as a pension fund?
Akansha Shivdasani made post

Can I use PPF(Public provident fund) account as a pension fund?

Answer
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Sadaf Khan answered.
2 weeks ago


Public Provident Fund (PPF) is not a pension scheme. PPF was introduced in India in 1968 with the objective to mobilize small savings in the form of investment, coupled with a return on it. It can also be called a savings-cum-tax savings investment vehicle that enables one to build a retirement corpus while saving on annual taxes.

PPF scheme is a long-term investment option that offers an attractive rate of interest and returns on the amount invested. The interest earned and the returns are not taxable under Income Tax. One has to open a PPF account under this scheme and the amount deposited during a year will be claimed under section 80C deductions.

A PPF account matures in 15 years. After the account matures, you can either withdraw the entire balance and close the account or extend it for five years with or without making further contributions. Withdrawals are tax-free and do not affect the tax liability of the individual. Corpus withdrawn on maturity is also tax-free.