This is the last month and last time for the financial year 2020-21. This time is very important for financial work. In such a situation, if you have not completed some financial work yet, then definitely complete it. If someone has invested in Public Provident Fund (PPF) and has not yet deposited a minimum amount in it for the current financial year, then complete this work before 31 March.
It is necessary to deposit at least once in a financial year in the Public Provident Fund. Its deadline is till 31 March. If this is not done then that account will be de-activated. On reopening it, you have to pay a penalty, which is 50 rupees for a financial year. PPF account is a tax saving investment tool. Here your money is also safe and along with the returns guaranteed, it is tax-free. One gets the benefit of deduction under Section 80C by investing. A minimum of 500 and maximum of 1.5 rupees can be deposited in a PPF account in a financial year. Interest is not earned by depositing more than that.
More benefits on deposit before 5th
PPF account can be deposited in one financial year in one lump sum or in a maximum of 12 installments. Currently, the interest rate on this is 7.1 percent. The government disposes of interest rate every quarter. The calculation of interest in PPF account is monthly compounding. Experts say that the investor should deposit the money in this account by the 5th of every month. After depositing after the fifth date, the interest on that deposit does not get the benefit of that month. Every month the calculation of interest is on the minimum amount between the 5th and the last date of the month.
Deposit 10 thousand every year, you will get 2.71 lakh at maturity
Talking about other features, the PPF account is of 15 years, which can be extended later in a block of 5-5 years. In such a situation, if you deposit 10 thousand rupees every year in PPF account, then after 15 years according to the current interest rate, it will become 272714 rupees. In 15 years, the total deposit amount will be Rs 1.5 lakh and the income will be Rs 121214 as interest. In this way, the depositor will get a total of 2.71 lakh rupees, which will also be completely tax free.
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