PPF Calculator | Start Investing Early to Secure Your Child’s Future
Almost all parents worry about the future of their children in an era of soaring inflation. It is annoying. That way you invest as soon as possible to get rid of all the problems in the future. For the safe future of children, this would be good.
If you want to invest for your future and looking for a good plan for it, you can open an account in Public Provident Fund (PPF) for your children. In PPF, you can invest in the name of children and secure their future. Any person can open his account in PPF, so let’s know the process of opening an account in PPF and its benefits.
What are the account opening rules?
In this one person can open only one account. Also, this is an option to open a PF account in the name of your minor children. Only the parents can manage the child’s account till he/she completes 18 years of age. After the child turns 18, the PF account is transferred in his name.
This account is for 15 years. In this, you can open a PPF account for children by depositing at least Rs 500. In this, you can deposit up to a maximum amount of Rs. 1.5 lakh per annum.
What are the benefits of PPF account?
According to media reports, the current interest rate on PPF account deposits is 7.1 percent. This interest rate is also applicable for children’s account. In this, you get tax exemption under Section 80C of Income Tax.
As per the Income Tax rules, if the amount deposited in the child’s account is earned by his parents or guardians, they can also take tax deduction on it. Apart from this, no tax is deducted on withdrawals from the account. Some amount can be withdrawn from the deposited amount after completion of 7 years after opening the account.
How to open PPF account for children
To open a PPF account for children, one has to go to the nearest bank or post office. You have to go here and apply for opening a PPF account. After this, all the information requested has to be recorded in it. After this, you have to attach all the required documents along with the application form and then you have to submit the form. The officer will check the form after which the account will be opened.
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