It is a good article written in simple and clear terms bringing out the essence of both the schemes. The only point missed out is that NOW NSCs can be purchased in dmat mode. Thereby it will be possible to have all moneys credited to one account and one need not hold multiple certificates. The other point is both schemes help you avail tax benefit by rotating your funds in a six year cycle, if required.
RE:PPF Vs NSC
by Vimla on Jun 17, 2006 08:48 PM Permalink
Mr.K.Ganeshan, Yes.you can continue your PPF A/c even after 15 years.Ask the Bank,with which you have your PPF A/c, to extend it for 5 years.The Bank will put a stamp of 5 year's extension on the passbook.You can repeat your request every 5 years till you wish;... or till Govt.closes the scheme,which is very likely to come sooner than later.
The article mentions that PPF account duration is 15 years and can be extended by another 5 years. Does any one know if we can continue the PPF account and continue paying into it, even after 20 years? For example, Can I continue my PPF account until retirement? Bank officials do not know anything about this.
I have invested Rs.15000/- in NSC in the name of my daughter who is one year old. NSc was purchsed in the name of daughter through her mother. Since I have invested money , can I eligible for tax rebate on amount invested ?
Let's say you open an account for your minor child. You can deposit Rs 70,000 in your account and Rs 70,000 in your child's account. But you will only get the tax benefit on Rs 70,000.
PLEASE ANYBODY CLARIFY WHETHER ABOVE STATEMENT IS CORRECT.BECAUSE I REMEMBER READING SOMEWHERE THAT MAXIMUM DEPOSIT IN OWN ACCOUNT AND THAT OF MINOR ACCOUNT TOGETHER SHOULD NOT EXCEED 70000/-
