Answer

1. F

   Facts

   The safest investment in India. Government guarantee. Tax-free interest. EEE status, exempt at investment, exempt during growth, exempt at maturity. But the 15-year lock-in confuses most investors, partial withdrawals, extensions, and loans are available but have specific rules.

2. P

   Provisions and law

   • Sec 10(11)
3. A

   Analysis

   Why April 5 matters: PPF calculates interest on MINIMUM balance between 5th and last day of each month. If you deposit ₹1.5L on April 1-5, it earns interest for all 12 months (April through March). If you deposit on April 6-30, you earn interest for only 11 months (May through March). On ₹1.5L at 7.1%, depositing after April 5 costs: ₹1.5L × 7.1% ÷ 12 = ₹888 in lost interest per year. 15-year calculation, when does it actually mature: First deposit: July 2010 (FY 2010-11). Maturity: end of FY 2024-25 = March 31, 2025 (15 full FYs from 2010-11). Common mistake: counting 15 calendar years from deposit date. It's 15 financial years from the FY of first deposit. Partial withdrawal rules (from Year 7): Withdrawal available from Year 7 of account. In year 7 (2024-25 if started 2009-10): withdraw up to 50% of balance at end of Year 4 (2013-14) or Year 6 (2018-19), whichever is lower.

4. C

   Conclusion

   1. 1Open PPF account: SBI, Post Office, HDFC, ICICI, Axis, any authorised bank/PO
   2. 2Deposit by April 5 each year for maximum interest. Set bank standing instruction for April 1 transfer.
   3. 3Minimum ₹500 per year to keep account active. Maximum ₹1.5L.
   4. 4If missed a year: account dormant. Revival: ₹500 minimum + ₹50 penalty per missed year.
   5. 5Calculate maturity year correctly: 15 FYs from FY of first deposit.
   6. 6Partial withdrawal from Year 7: fill Form C at bank. One per year, 50% limit.

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