PPF: Everyone dreams of becoming a millionaire and making the future financially secure. But due to lack of proper planning and investment information, many people are unable to achieve this target. If you are also looking for a safe and reliable scheme
PPF: Everyone dreams of becoming a millionaire and making the future financially secure. But due to lack of proper planning and investment information, many people are unable to achieve this target. If you are also looking for a safe and reliable scheme, then Public Provident Fund (PPF) can be a great option for you. This scheme not only keeps your money safe, but can also make you a millionaire in the long run.
Invest Rs 12,500 every month
If you deposit Rs 12,500 in your PPF account every month, then this amount becomes Rs 1.5 lakh annually. This is also the maximum investment limit in PPF. At the current interest rate of 7.1% per annum, if you invest continuously for 15 years, you will get Rs 40.68 lakh on maturity.
- Your total investment: Rs 22.50 lakh
- Income in the form of interest: Rs 18.18 lakh
- However, this calculation is based on the current interest rate, which is revised by the government every quarter.
How to get more than Rs 1 crore in 25 years?
The basic period of PPF is 15 years, but it can be extended in blocks of 5 years each. That is, you can continue investing for a total of 25 years. If you deposited Rs 12,500 every month and continued it for 25 years, then…
- Total investment will be: Rs 37.50 lakh
- Total interest received: Rs 65.58 lakh
- Total amount will be: Rs 1.03 crore
But keep in mind, it is necessary to apply for extension of the account one year before completion of 15 years. If you do not apply on time, the account will not be extended.
Tax benefits of PPF
- The biggest advantage of PPF is that there is no tax on investment, interest and maturity amount. This scheme comes under EEE (Exempt-Exempt-Exempt) category.
- Tax exemption on investment up to Rs 1.5 lakh under section 80C
- No tax on interest
- Maturity amount is also tax free
Why invest in PPF?
- Government guarantee: This scheme is completely run by the government.
- Long term benefit: A fund of Rs 1 crore can be created from a 25-year plan.
- Compounding interest: Every year interest is paid on interest, which increases the returns.
- Tax savings: Both investment and returns are tax free.
If you are also planning for safe and profitable investment, then PPF can be a great option for you. By investing a little bit, you too can become a millionaire in the future.
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