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HomePersonal FinancePPF Interest Double: Invest in PPF with this trick, you will get...

PPF Interest Double: Invest in PPF with this trick, you will get double interest, you will get Rs 1 crore in 15 years.

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Under Section 80C of Income Tax in PPF, tax exemption is available on investment up to Rs 1.5 lakh. The maximum investment limit in PPF is Rs 1.5 lakh. You can deposit money 12 times in a year. But, here is something useful for married investors.


Investing in Public Provident Fund (PPF) is a means of good interest and tax saving. Most Indians like to invest in this scheme. There is a government guarantee on this. The special thing is that this investment has been kept in E-E-E category. Meaning your investment, interest and maturity amount are completely tax free. Income tax exemption is available on investments up to Rs 1.5 lakh annually in PPF. But, you can increase this investment and the interest on your investment can also double. Let us understand…

How does investment double?

Under Section 80C of Income Tax in PPF, tax exemption is available on investment up to Rs 1.5 lakh. The maximum investment limit in PPF is Rs 1.5 lakh. You can deposit money 12 times in a year. But, here is something useful for married investors. If you open PPF in the name of your partner, you can double the investment in one financial year and can also avail interest on both the accounts.

These benefits are available on investment in PPF

Experts say that by opening a PPF account in the name of his life partner, the investor can invest in PPF instead of his other investment options. In such a situation he will have two options. First, you can deposit up to Rs 1.5 lakh in your account. At the same time, another can deposit Rs 1.5 lakh in the name of the partner in a financial year. Different interest will be available on these two accounts. At the same time, tax exemption of up to Rs 1.5 lakh can be availed on any one account. In such a situation, your PPF investment limit will double to Rs 3 lakh. Being in E-E-E category, the investor will also benefit from tax exemption on interest and maturity amount of PPF.

No effect of clubbing provisions

Under Section 64 of Income Tax, income from any amount or gift given by you to your wife will be added to your income. However, in case of PPF which is completely tax free due to EEE, the clubbing provisions have no impact.

Trick for married people

At the same time, when your partner’s PPF account matures in the future, the income from your initial investment in your partner’s PPF account will be added to your income year after year. Therefore, this option also gives married people an opportunity to double their contribution to the PPF account. The interest rate of PPF for the April-June quarter is fixed at 7.1 percent.

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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