Question 1
Compare any five features of Senior Citizen Scheme and PPF( Public Provident Fund).
Solution
|
FEATURES |
PPF | Senior Citizen Scheme | |
| i | Rate Of Interest | Lower Rate Of Interest or 8.1%/ 7.9% | Higher rate or 8.6 %/ 8.5% |
| ii | Interest Is Tax-Free / Not Taxable | Interest Is Tax-Free | Interest Is Taxable |
| iii | Loan facility | Can Take Loan | No Loan Facility |
| iv | Lock in period /time period | 15 Years Can Extend To 5 + Years ( Block Of 5 Years) | 5 Years Can Be Extended For 3 Years |
| v | Deposit | Once In A Year Or In 12 Instalments Per Annum | Can Deposit In lumpsum |
| vi | Max limit | Maximum Deposit 1½ Lakh Per Annum | Maximum- 15 Lakh ( One Time) |
| vii | Who can invest? | Any One (Can Open only One Account) | Only Senior Citizens Or Those Who Have Taken Voluntary Retirement |
| viii | Tax rebate | Tax Rebate Facility | Tax Rebate Facility |
| ix | Premature closure | Premature closure Allowed In Special Cases ( Higher Studies. Illness ) | Premature Closure Allowed With Penalty After 1 Year. |
| x | Compound interest | Interest Accumulated And Earns Interest | Interest Not Accumulated And Transferred To Savings Account (@ 4%) Every Quarter |
| xi | Wealth tax | Exempted From Wealth Tax | Not Exempted From Wealth Tax |
