PPF: Every Indian dreams of becoming a millionaire but how to become one is a big question. Everyone looks for such an investment in which he can get more returns by investing less money. PPF is a similar type of investment in which an investor can become a millionaire by investing regular money.
PPF: Every Indian dreams of becoming a millionaire but how to become one is a big question. Everyone looks for such an investment in which he can get more returns by investing less money. PPF is a similar type of investment in which an investor can become a millionaire by investing regular money. To earn more returns in PPF, it is important that you start investing in it from an early age. Only then you will be able to earn maximum returns.
This much money will have to be deposited every month
If you deposit Rs 12,500 every month in PPF account and invest it for 15 years. So you will get a total of Rs 40.68 lakh on maturity. Your total investment in this will be Rs 22.50 lakh, while your income from interest will be Rs 18.18 lakh. If we look at one day’s investment of Rs 12,500, it comes to Rs 417. This calculation has been done on the basis of 7.1% annual interest for the next 15 years. The maturity amount may change when the interest rate changes. Interest in PPF is available on compounding basis.
Get exemption on tax
The biggest advantage of the PPF scheme is that it gets tax exemption under Section 80C of the Income Tax Act. In this scheme, you can avail rebate on investment up to Rs 1.5 lakh. The interest received on PPF is also not taxed. The most important thing is that the government promotes small savings schemes. Therefore investing in it is completely safe.
