According to the PPF rules, you can invest up to Rs 1.5 lakh annually in the PPF account. You can do this on a monthly or yearly basis.
PPF: Public Provident Fund (PPF) is a better option for investors who want guaranteed returns on their investments. In this, not only do you get tax benefits on investment, but there is no tax to be paid on the interest amount and maturity amount received on the investment. Since, the investment in PPF is completely protected by the government, hence the risk for the investors is negligible. By investing in PPF regularly, you can generate substantial returns in the long term. According to PPF rules, you can invest up to Rs 1.5 lakh annually in a PPF account. You can do this on a monthly or yearly basis.
Have an account in PPF, SSY or NPS? Get this work done before March 31, otherwise the account will be closed
How to get more interest from investment before April 5
It is often seen that salaried individuals generally invest in their PPF accounts at the end of the financial year to save tax. However, experts say that under this scheme, to get maximum returns, investors should invest in the beginning of the financial year itself, i.e. between April 1 and April 4. According to the rules of PPF, the interest on this account is calculated on the minimum balance deposited from the 5th to the end of the month. Interest on PPF deposit is calculated every month. But, it is credited only at the end of the financial year. That is, if you deposit money in this account before April 5, you will also be eligible for the interest for that month. If you deposit money after the 5th, then you will have to bear the loss of interest.
How to calculate interest on PPF
For interest calculation, that amount is taken in the PPF account between the fifth of a month and the last day of the month. This means that if you contribute after the 5th of any month, then interest will be calculated on the amount in the account in the previous month. On the contrary, if the contribution is made before the 5th of any month, then interest will be calculated on the balance in the previous month as well as in this month.
Before March 31, invest money in this scheme, get guaranteed pension at the rate of 7.4% every month for 10 years
1 crore fund can be created in 25 years
At present, the PPF scheme offers 7.1% interest per annum. It is compounded annually and paid on maturity after 15 years. The scheme also provides investors an opportunity to extend their account beyond the mandatory maturity period in blocks of every 5 years. You can avail tax benefits under section 80C on PPF deposits. The interest and maturity amount received in this is also tax-free. Funds can be created up to Rs 1 crore in 25 years at the current interest rate of 7.1 percent on PPF.
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