Currently, there are many government schemes for investment. If you are looking for a scheme where you get tax benefits along with high returns, then you can invest in PPF (Public Provident Fund). In this scheme, you can get an amount of more than 1 crore on maturity. Let us know about this scheme in detail.
Special Savings Scheme: Everyone dreams of becoming a millionaire. For this, many people start investing while working. Currently, there are many investment options available, which are giving high returns.
If you are also looking for a secure savings scheme, then today we will tell you about the PPF scheme (Public Provident Fund) run by the government.
There is no risk in this scheme and it also gives high interest. If you invest Rs 405 daily in this scheme, then you can get Rs 1 crore after maturity.
Great interest is available on PPF (PPF Interest Rate)
The PPF scheme gives more interest than the fixed deposit (FD) in the bank and post office. Currently, the government is paying interest at the rate of 7.1 percent in this scheme. Compound interest is given on this scheme by the government. Interest is paid in the investor’s PPF account in the last month of every business year i.e. March.
How much investment is required
According to the PPF website, a minimum investment of Rs 500 and a maximum of Rs 1.5 lakh can be made in this scheme annually. If an investor does not invest in the entire financial year, the PPF account gets frozen. To restart the account, the investor has to pay a penalty along with the investment amount.
You get the benefit of tax benefit (PPF Tax Benefit)
The special thing about this scheme is that it is completely tax free. There is no tax on the investment amount, interest and the amount received after maturity. Apart from this, this scheme also provides tax exemption of up to Rs 1.5 lakh under Section 80C of Income Tax.
In how many years does the scheme mature?
In this scheme, the investor has to invest for 15 years. This means that the maturity period of the scheme (PPF Maturity Period) is 15 years. If the investor wants, he can continue the investment even after the maturity period. Yes, the investor can extend the PF account for 5-5 years. For this, he will have to apply one year before maturity.
You can withdraw before maturity
Investors in PPF scheme can make partial withdrawals even before maturity. In case of emergency, the investor can withdraw 50 percent of the amount deposited in the PF account. However, partial withdrawal can be done only after the PF account is 6 years old.
Even a loan can be taken after investing in a PF account for 3 years. The investor gets a loan of only 25 percent of the amount deposited in the PF account. The repayment tenure of the loan is 36 months and 2 percent interest is charged on it.
How can one become a crorepati with PPF scheme?
PPF scheme is a kind of Crorepati Scheme. If the investor invests Rs 405 every day, then he will invest Rs 1,47,850 annually. If he invests in the account for 25 years and gets an interest of 7.1 percent, then he will get more than Rs 1 crore at the time of maturity.
