We all are concerned about our savings so as to have a secured and happy future. However, in today's crucial time, people are not properly aware that where they should invest to get good returns. So, make wise choices during your earning days and have a tension-free life after retirement. Investing in the government scheme of Public Provident Fund (PPF) you can earn lakhs of profits by only investing 100 rupees.
What are the benefits of the Public Provident Fund (PPF):
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Public Provident Fund offers high interest rates
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It is loaded with tax benefits, tax exemption, and security to capital.
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Interestingly, the interest earned & returns are not taxable under the Income Tax.
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By investing Rs 100 in this government scheme, you can earn around Rs 54.47 lakh.
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By investing money in the PPF scheme, you can save tax of up to Rs 1.5 lakh every year.
Is Public Provident Fund a good investment?
Yes, PPF is a very good option for people, who are risk-averse & are looking for long-term investment. PPF provides fixed returns and the rate of interest is at around 7.1%.
What is the duration of the public provident fund?
The duration of the public provident fund is 15 years. It is to be noted that the minimum duration of a PPF account is 15 years. But, account holders can extend the duration of the account by a block of 5 years.
Why should you invest in PPF?
1. PPF offers High-interest rates:
The interest rate on the PPF is currently 7.1 percent.
2. Maximum amount of investment in PPF
The maximum amount of investment through the PPF is Rs 1.5 lakh every financial year, while the minimum investment is Rs 500 each year.
3. Tax-free interest income in PPF:
PPF offers exempt-exempt-exempt (EEE) tax benefits i.e. interest earned on the Public Provident Fund is tax-free.
4. Tax benefits under Section 80C:
A sum of Rs 1.5 lakhs invested every year, qualifies for tax benefits.
5. Partial withdrawal & loan facility:
The maximum amount that can be availed as a loan from the PPF account is 25% of the total amount accumulated in his PPF account by the end of the second fiscal year preceding the year in which the loan was applied for.
