Public Provident Fund. A government-backed long-term savings scheme with tax benefits under Section 80C. Lock-in period of 15 years. Relevant for FIRE planning as a safe asset.
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PPF
FIRE PlanningTax & Regulations
Related terms
80C Deduction
Section 80C of the Income Tax Act allows deductions up to Rs 1.5 lakh per year for investments in ELSS mutual funds, PPF, EPF, NPS, and other specified instruments.
Capital Gain
The profit realized when a security is sold for more than its purchase price. In India, classified as short-term (held <=12 months) or long-term (held >12 months) for tax purposes.
Corpus
The total accumulated amount of money in an investment portfolio or fund. In FIRE planning, the target corpus is the amount needed to sustain retirement expenses.
FIRE
Financial Independence, Retire Early. A movement focused on aggressive saving and investing to achieve financial independence and retire much earlier than traditional retirement age.
Gratuity
A lump-sum benefit paid by an employer to an employee upon retirement or resignation, based on years of service. Relevant for FIRE planning as a retirement income component.
Holding Period
The duration for which an investor holds a security. Determines tax treatment: equity held over 12 months qualifies for LTCG rates in India.