PPF Account: Tax deduction can be claimed on investment in Public Provident Fund (PPF). However, it has to be kept in mind that only taxpayers using the old regime of income tax can claim this deduction
PPF Account: The government has not changed the interest rate of small savings schemes. This means that the interest on all small savings schemes will remain unchanged in the second quarter of this financial year. These include PPF, Sukanya Samriddhi Yojana, Kisan Vikas Patra and Post Office Savings Deposit Schemes. The interest rate on PPF will remain 7.1 percent. This is the most popular investment option in small savings schemes.
Benefit of deduction on investment of Rs 12,500 every month
Tax deduction can be claimed on investment in Public Provident Fund (PPF). However, it has to be kept in mind that only taxpayers using the old regime of income tax can claim this deduction. A deduction can be claimed by investing up to Rs 1.5 lakh in PPF in a financial year. This means that if a person invests Rs 12,500 every month in PPF, then he can claim deduction on his total investment in a financial year.
PPF is an investment scheme with EEE tax benefit
By investing Rs 12,500 every month in PPF, a fund of Rs 40.6 lakh is created in 15 years. A big feature of PPF is that it comes under EEE tax-benefit investment options. This means that there is no tax on your contribution amount. There is no tax on the interest amount of your deposit and in the end there is no tax on your maturity amount either.
There is no fear of money sinking as it is a government scheme
For such people who want fixed returns on investment, PPF is the best investment option. Due to its attractive interest rate, many people include PPF in their retirement planning. Since this small savings scheme is supported by the government, investing in it is considered safe. There is no fear of your hard-earned money getting lost in it.
Investment matures in 15 years
Financial advisors say that it is wise to include PPF in retirement planning. The reason for this is that the fluctuations in the stock markets affect the returns of the equity scheme of mutual funds. But, fluctuations in the stock market have no effect on your investment in PPF. Investors only have to keep in mind that the money in PPF matures in 15 years.
Most Read Articles:
- Bank FD Interest Rates: These 6 banks are offering the highest interest on FD, a golden opportunity for investors
- UPI Transaction New Rules: Big news for PhonePe, GPay, Paytm users, these rules will change from August 1
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
