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Difference between PF and PPF
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TOPIC: Difference between PF and PPF

Difference between PF and PPF 5 years, 6 months ago #432

Can anybody tell me what is the difference between PF and PPF..

Re: Difference between PF and PPF 5 years, 6 months ago #435

  • Kartik
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PF is mandatorily cut from individual's salary. It is fixed at 12.5% of your basic by government of India. You get a interest rate of 8.5% on the corpus that accumulates in the PF. The amount you contribute as PF is also contributed by your employer also. For example if your basic salary is 10000, then 1250 will be contributed by you and another 1250 will be contributed by your employer making it 2500 in the PF account. PF account is held with government of India.

PPF is savings scheme launched by government where in you can deposit upto INR 70000 in an year. It gives of tax free interest of 8%. The PPF account is for 15 years but can be renewed later...

Re: Difference between PF and PPF 5 years, 6 months ago #438

Is there any tax benefit on any of these..

Re: Difference between PF and PPF 5 years, 6 months ago #440

  • Kartik
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yes the PF is totally exempted from tax and PPF is also covered under 80C which has limit upto 1 lac. So your PF and PPF can amount to 1,00,000 for tax exemption...

Re: Difference between PF and PPF 5 years, 6 months ago #444

thanks kartik...can u also tell me how do i invest money in PPF...

Re: Difference between PF and PPF 5 years, 5 months ago #449

  • Kartik
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you can open PPF account in any of the public sector banks...you can deposit money in this account...u have to deposit minimum of Rs 100 per year in this account..

Re: Difference between PF and PPF 5 years, 5 months ago #452

how can i withdraw money from this account..is it that i can only withdraw after 15 years...

Re: Difference between PF and PPF 5 years, 5 months ago #457

  • Kartik
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You may not withdraw any amount from your PPF amount within first 5 years. From the 6th year onwards, you can withdraw money from your account but this is limited to once per year. If your account is 15 or more years old, you can withdraw up to 60% of the balance.

Re: Difference between PF and PPF 5 years, 5 months ago #459

thanks kartik:)
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