The Public Provident Fund (PPF) is a popular and safe investment that gives assured and tax-free returns. At 7.1% tax-free, it offers higher returns than what other fixed income options give. The new rules for taxation of Provident Fund contributions above Rs 2.5 lakh in a year have made it eeen more attractive. But keep the annual limit in mind when you invest in the PPF. In a financial year, an individual can contribute only up to Rs 1.5 lakh to her PPF account. This cap includes both self and minor children’s accounts. If you open a PPF account in your child’s name, the combined contribution to both accounts must not exceed Rs 1.5 lakh in a financial year. While this limit is straightforward, some people invest more in the scheme. They either open multiple PPF accounts in thei
Investing in PPF? Don’t exceed the Rs 1.5 lakh limit; interest earned on excess contribution will be taken back!

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