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Consider the following statements regarding the Public Provident Fund (PPF) Scheme:
- The Government of India guarantees your investments in the PPF.
- Investments in PPF are tax-exempt under section 80C of the Income Tax Act (ITA).
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements regarding the Public Provident Fund ...
Public Provident Fund (PPF) Scheme
• The Public Provident Fund (PPF) is a long-term savings scheme introduced by the Government of India in 1968 to encourage savings among the general public.
• The scheme is administered by the Ministry of Finance under the Public Provident Fund Act, 1968.
• The scheme is open to all individuals, including minors, and can be opened at designated branches of nationalized banks, post offices, and some private banks.
Government Guarantee
• The Government of India guarantees the investments made in the PPF scheme.
• This means that the investments made by individuals in the scheme are safe and secure.
Tax Benefits
• Investments made in the PPF scheme are eligible for tax exemption under section 80C of the Income Tax Act (ITA).
• The maximum limit for investment in the scheme is Rs. 1.5 lakh per financial year.
• The interest earned on the investments in the scheme is also tax-free.
Conclusion
Hence, both the statements given in the question are correct. The Government of India guarantees the investments made in the PPF scheme, and investments made in the scheme are eligible for tax exemption under section 80C of the Income Tax Act (ITA).
• The Public Provident Fund (PPF) is a long-term savings scheme introduced by the Government of India in 1968 to encourage savings among the general public.
• The scheme is administered by the Ministry of Finance under the Public Provident Fund Act, 1968.
• The scheme is open to all individuals, including minors, and can be opened at designated branches of nationalized banks, post offices, and some private banks.
Government Guarantee
• The Government of India guarantees the investments made in the PPF scheme.
• This means that the investments made by individuals in the scheme are safe and secure.
Tax Benefits
• Investments made in the PPF scheme are eligible for tax exemption under section 80C of the Income Tax Act (ITA).
• The maximum limit for investment in the scheme is Rs. 1.5 lakh per financial year.
• The interest earned on the investments in the scheme is also tax-free.
Conclusion
Hence, both the statements given in the question are correct. The Government of India guarantees the investments made in the PPF scheme, and investments made in the scheme are eligible for tax exemption under section 80C of the Income Tax Act (ITA).
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Community Answer
Consider the following statements regarding the Public Provident Fund ...
A top government official recently indicated that investors in the popular small saving schemes Public Provident Fund (PPF) and Sukanya Samriddhi Account (SSA), whose rates have not been hiked since January 2019, are unlikely to get higher returns anytime soon.
About Public Provident Fund (PPF) Scheme:
- The PPF Scheme is a very popular long-term savings scheme in India because of its combination of tax savings, returns, and safety.
- The PPF was first offered to the public in the year 1968 by the Finance Ministry’s National Savings Institute.
- Objective: To help individuals make small savings and provide returns on the savings.
- It is one of the safest investment products. i.e., the government of India guarantees your investments in the fund
- Tenure: 15 years (Can be renewed in blocks of 5 years).
- Interest rate: Interest rates currently payable on such accounts stand at 7.1%.
- Investment Amount: Minimum Rs.500, Maximum Rs.1.5 lakh p.a.
- Who is eligible for a PPF account? Any Indian citizen can open a PPF account.
- The PPF accounts cannot be held jointly, though you can make a nomination.
- Investment in PPF is tax-exempt under section 80C of the Income Tax Act (ITA), and the returns from PPF are also not taxable.
Hence both statements are correct.
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Consider the following statements regarding the Public Provident Fund (PPF) Scheme: The Government of India guarantees your investments in the PPF. Investments in PPF are tax-exempt under section 80C of the Income Tax Act (ITA).Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding the Public Provident Fund (PPF) Scheme: The Government of India guarantees your investments in the PPF. Investments in PPF are tax-exempt under section 80C of the Income Tax Act (ITA).Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the Public Provident Fund (PPF) Scheme: The Government of India guarantees your investments in the PPF. Investments in PPF are tax-exempt under section 80C of the Income Tax Act (ITA).Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the Public Provident Fund (PPF) Scheme: The Government of India guarantees your investments in the PPF. Investments in PPF are tax-exempt under section 80C of the Income Tax Act (ITA).Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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