Many are now turning to investing. In today’s world of automation can be a daunting task.
After the deadly corona infection, everyone is now worried about their future. It is seen that many of them have turned to investing. In today’s world of automation can be a daunting task. Public provident fund is a great option for this. This is a long term investment plan.
In this the government pays strong interest rates to the consumers. The most special feature of this scheme is that it falls in the EEE (Exempt-Exempt-Exemp) category. This means that customers also get the benefit of deduction on investment.
Most importantly, the PPF corpus is completely tax-free once the policy matures. This means that he does not have to pay any tax on the interest earned.
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PPF is a great option after retirement. According to the PPF calculator, if one starts investing Rs 25,000 every year till the age of 25, he gets around Rs 38 lakh after retirement (after completing 60 years). They are also completely tax free.
In fact, the lock-in period for PPF is 15 years. If an account holder closes prematurely, he / she can withdraw the amount deposited after completion of 6 years.
Tax Profit on PPF – Public Provident Fund comes in EEE type. Both investment and interest income are tax free. A minimum of Rs 500 and a maximum of Rs 150,000 are invested in this financial year.
If you also invest in it, you will get the benefit of deduction under section 80C of the Income Tax Act. For this you can open an account in any post office or in public or private sector banks.
PPF gets 7.1 per cent annual interest – The government is paying 7.1 per cent annual interest on PPF accounts.
It can be invested in two ways. Payments can be made in cash, check, online, draft any way. Account holders can also choose a nominee for themselves.
