The Most Profitable Investment Scheme in India - Public Provident Fund

Many of Indians, who have settled here in the USA at an old age of around 60 years, are sometimes not in a position to decide where to invest their money in India without any tax liabilities and other complications. I have myself worked for around 33 years in India and have become USA resident since last three years. My life saving is invested in India in various sources and I am in a position to earn quiet handsome interest on it. The best option of the investment in India that can fetch good interest and at the same time do not attract income tax liabilities on the interest earned is the scheme of Public Provident Fund, shortly known as PPF.

This scheme is operated by government of India and is open to all Indian citizens. The account for PPF can be opened in any post offices or some of the nationalized banks like State Bank of India, Bank of Baroda. The account can be opened in single name with the nominees. The scheme is for the period of 15 years and the total deposits with the cumulative compound interest of 8% can be totally withdrawn at the end of this period. The individuals can get 20% of their total deposits after 5 years. The maximum amount that can be invested in this scheme is Rs.70000 per financial year from April to March. The amount invested in this scheme is tax free and deducted from your total taxable income. The government pays 8% of compound interest on deposits every year. The principle amount as well as the interest paid is totally income tax free. This is the only scheme available in India, where the interest earned is totally tax free at the time of withdrawal. This is the most attractive feature of the scheme.