Multiple choice

Which of the following is untrue for Public Provident Fund Schemes?

  1. The interest is tax-free

  2. Post-tax returns are attractive

  3. Liquidity is rather low

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Public Provident Fund (PPF) schemes offer tax-free interest under Section 10(10D), making post-tax returns attractive. However, PPF has a 15-year lock-in period with limited withdrawal options, making liquidity quite low. Since all three statements A, B, and C are true characteristics of PPF, option D 'None of the above' is correct as it means 'None of the above is untrue'.

Keep practicing — related questions