Along with interest on PPF investment, tax exemption is also available. Government guarantee is also available on this. The central government has fixed 7.1 percent interest rate on PPF for the April-June quarter.
Public Provident Fund ie PPF is a great option for investment. In this, you get excellent interest as well as tax exemption. Most of the Indians like to invest in this scheme. Its most important thing is that you also get a government guarantee on it. Also, this investment has been placed in the E-E-E category. This means that your investment, interest and maturity amount all three are completely tax free.
Let us tell you that under Section 80C of Income Tax, up to Rs 1.5 lakh tax exemption is available for investing in PPF. But you can double this investment by increasing it. If you can double the investment in one financial year by opening a PPF account in the name of your partner. In this way, you will get the benefit of interest on both the accounts.
Benefits of investing in PPF
According to experts, you can open a PPF account in the name of your life partner and use it as another investment option. In such a situation, you will have two options for investing in PPF. You will be able to deposit Rs 1.5 lakh in your account and Rs 1.5 lakh in the account opened in the name of your partner.
In this way, you will get different interest on both the accounts. At the same time, you can also take tax exemption up to Rs 1.5 lakh on any one account. In this case, the limit of your PPF investment will be doubled to Rs 3 lakh. Being in the E-E-E category, the investor will also get the benefit of tax exemption on PPF interest and maturity amount.
Amount will be tax free
When you deposit the amount in the PPF account opened in the name of your partner, both your accounts will remain tax free. However, under section 64 of Income Tax, income from any amount or gift given by you to your wife is added to your income. But in the case of PPF, these provisions of clubbing have no effect. Because it is completely tax free because of EEE.
Interest Rates in PPF
Let us tell you that in this way married couples can take advantage of double interest (14.2%) in PPF. Later on when your partner’s PPF account matures, the income from your initial investment in your partner’s account will be added to your income year after year. The interest rate of PPF has been fixed at 7.1 per cent for the April-June quarter.
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