Q. I am looking at opening a PPF account. What are the tax benefits on the investment and the returns on PPF? Can I make the deposits online?
A. You can claim a tax deduction for investment in PPF. The maximum deduction available is Rs 1.5 lakh under section 80C. The present rate of interest on PPF is 7.9%. The interest and the proceeds on maturity, both are tax exempt. You can maintain your PPF account online either with a bank or a post office. You can make an online transfer of funds from your savings account (with the same bank) or through ECS or NEFT in case of transfer made from an account with any other bank. You can deposit a maximum of Rs 1,50,000 in your PPF account in one financial year.
The query is responded by Archit Gupta, Founder and CEO, ClearTax