PPF account is the most attractive in terms of returns, know why - Business World

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Sunday, 25 February 2018

PPF account is the most attractive in terms of returns, know why

PPF account is the most attractive in terms of returns, know why 

If you invest in PPF, you get tax exemption, interest is also tax-free, meaning that it gets Interest Free Tax Ink.

PPF account is still the most attractive option

New Delhi: Among the small savings schemes for the general public, PPF is still one of the most attractive schemes. The interest on this is still less than the Senior Citizen Savings Scheme and Sukanya Samriddhi Scheme and it is better than the other savings schemes. Although PPF has one of the best benefits, it can prove to be a good return for you from NPS. PPF is the most attractive saving scheme for you in return.

The biggest advantage of a PPF account / compared to
NPS is that in 60% of the returns of your 60-year return in NPS tax is taxed, whereas on PPF you get the benefit of Triple E (EEE). 
If you invest in PPF, you get tax exemption, interest is also tax-free, meaning that it gets Interest Free Tax Ink. 
At the same time, there is no tax to be paid during maturity of the PPF account. It means PPF Exempt-Exempt-Exempt (EEE) Investment. It also guarantees the government and adding this benefit also can prove to be a great deal of profit.

The rate of interest on the PPF account
is fixed by the Government of India for every three months and the interest rate is currently 7.6 per cent, which has been fixed for January-March 2018.

How is the calculation of PPF account's interest rate calculation
interest on PPF account is calculated every month. Calculation of interest of PPF is done on minimum balance between 5th day of month and last day. However its interest is credited to your PPF account at the end of the year.

How much and how much gets tax on
PPF, if you look at tax exemption PPF accounts, you can get tax on the investment up to 1.5 lakh rupees every year. Under the tax (80C) of Income Tax Act, you can get tax benefit on investment upto Rs 1.5 lakhs.

How much you can invest in PPF
It is very important for you to know how much you can invest in the PPF from how many rupees. You can start investing from Rs 500 in PPF and invest up to 1.5 lakhs in a year. You can invest up to 1.5 lakh rupees in a year and no more than that. You can deposit at least 500 rupees and more than 1.5 lakh rupees in a financial year and 12 times a year you can invest in PPF account, which should not exceed Rs 1.5 lakhs in total.

Families can be as much investment
if you are married may be your PPF of Rs 1.5 million in accounts and overall who put Rs 1.5 lakh in his spouse's account Rs 3 lakh but you tax your Up to 1.5 lakh rupees will be available only on investment. If you want to open an account for children, then you can invest up to 1.5 lakhs in your PPF account as your child's Guardian. However, if the PPF is open for minor children and you own a PPF account then you can claim tax deduction up to Rs 1.5 lakh.


You can take a loan from a PPF account linked to PPF account and work things . The PPF can take up the loan for the sixth year from the third year of opening the account. You can take a loan from your PPF account, from the one year after the end of that year, to 5 years after the account opened. You will not be able to take a loan since the sixth year. That's because you can withdraw money from your PPF account after 
that you can transfer your PPF account to a post from a bank, from one bank to another, or from a bank to the post office.

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