What is a key advantage of a Public Provident Fund (PPF)? Option: "Guaranteed returns higher than market rates", "Unlimited investment allowed", "High liquidity and easy withdrawals", "Investment amount, interest income, and withdrawals are tax-free"

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What is a key advantage of a Public Provident Fund (PPF)?

"Guaranteed returns higher than market rates"

"Unlimited investment allowed"

"High liquidity and easy withdrawals"

"Investment amount, interest income, and withdrawals are tax-free"

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What is the tax implication on withdrawals from a PPF account?

Tax implications depend on the withdrawal amount

Withdrawals are taxed at the individual's income tax slab rate

Withdrawals are subject to a 10% capital gains tax

Withdrawals are exempt from taxation

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Which of the following is a key characteristic of Public Provident Fund (PPF) in India?

"It is a long-term savings scheme with a fixed tenure of 15 years, operated and guaranteed by the Central Government."

"It is primarily designed for short-term investment goals, such as funding a vacation or making a down payment on a car."

"It offers high liquidity, allowing investors to withdraw funds at any time without penalty."

"Returns are market-linked and fluctuate based on the performance of underlying assets."

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What is the key advantage of NPS over other long-term tax-saving instruments like Public Provident Funds?

NPS allows for early withdrawals without penalties, unlike PPF

NPS offers guaranteed returns, while PPF returns are subject to market fluctuations

NPS returns are significantly higher due to partial equity allocation

NPS contributions are eligible for higher tax deductions compared to PPF

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Which Post Office scheme is considered a suitable retirement or pension plan?

Kisan Vikas Patra Account

National Savings Time Deposit Account

Public Provident Fund Account

National Savings Certificates (NSC)

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Under which section of the Income Tax Act can tax benefits be claimed for PPF investments?

"Section 80D"

"Section 80E"

"Section 80G"

"Section 80C"