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Home Personal Finance PPF Investment Trick: Big news! Your money will be double, interest also...

PPF Investment Trick: Big news! Your money will be double, interest also be doubled , know how

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PPF Investment Trick: Big news! Your money will be double, interest also be doubled , know how

PPF Investment: Most of the 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 the EEE category.


PPF Investment: Investment in Public Provident Fund is a way of saving good interest and tax apart from saving. Most of the 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 the EEE category. Meaning your investment, interest and maturity amount are all completely tax free. Tax exemption is available on investment up to Rs 1.5 lakh annually in PPF. But, you can increase this investment and also take advantage of double interest. Let’s understand…

How does double investment happen?

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’s a thing for married investors. If you open PPF in the name of your partner, then you can also double the investment in one financial year and can also take advantage of 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 option. In this case, he will have two options. The first can deposit up to 1.5 lakh rupees in his account. At the same time, in the name of the second partner, one can deposit 1.5 lakh rupees 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 taken on any one account. In such a situation, your PPF investment limit will double to Rs 3 lakh. Being in the EEE category, the investor will also get the benefit of tax exemption on the interest and maturity amount of PPF.

Clubbing provisions have no effect

Income from any sum or gift given by you to your wife will be added to your income under section 64 of Income Tax. However, in case of PPF which is completely tax free on account of EEE, the clubbing provisions do not have any effect.

Trick for married people

At the same time, when your partner’s PPF account matures in future, then 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 a chance to double their contribution in the PPF account. At present, the interest rate of PPF is fixed at 7.1 percent.

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