Post Office PPF: Superhit scheme of post office, Deposit Rs 5000 every month to earn over Rs 26 lakh, know

 

Post Office PPF: Superhit scheme of post office, Deposit Rs 5000 every month to earn over Rs 26 lakh, know

Banks and post offices themselves explain the benefits of investing in PPF. Good interest, tax free investment, the money received on maturity is completely yours. It is a great tool from investment point of view. Maturity period is 15 years.

Want to start investing or are looking for a way to earn good income from interest. Or want an investment where there is no risk. In such a situation, Public Provident Fund i.e. PPF scheme is the best. Any citizen of India can invest in it. The biggest thing is that the benefits available in it remain the most preferred. Banks and post offices themselves explain the benefits of investing in PPF. Good interest, tax free investment, the money received on maturity is completely yours. It is a great tool from investment point of view. Maturity period is 15 years. But, the investment can be extended even after 15 years. If you give extension, your returns will run at the speed of rocket and you will keep watching when the initial investment of Rs 5000 becomes more than Rs 26 lakh.

At the time of maturity you get 3 options. It is very important to understand these 3 options. First, withdraw your money after maturity. Secondly, even if you do not withdraw, interest will continue. Third, with new investment, extension can be given for 5 years. Let us understand how and what needs to be done.

1. Withdraw entire money on maturity

On maturity of PPF account, withdraw the amount deposited by you and interest. In case of account closure, the entire money will be transferred to your account. The money and interest received on maturity will be completely tax free. Apart from this, income tax exemption is available on investments up to Rs 1.5 lakh every year. You will not have to pay any tax on whatever money you have deposited during the entire tenure.

2. Increase PPF investment for 5 years

The second option is to increase the investment after maturity. In the scheme, the option of account extension is given for a tenure of 5-5 years. However, if you want extension for the next 5 years, then you will have to inform the bank or post office 1 year before the maturity of the PPF account. The good thing is that the rule of pre-mature withdrawal does not apply at the time of extension and you can withdraw money anytime.

3. Scheme without increasing investment even after maturity

Third option in PPF account, even if you do not choose the above two options, the account will continue to operate after maturity. There will be no need for new investment in this. Maturity will automatically extend by 5 years. But, the biggest advantage will be that you will continue to get interest on the deposited amount during this entire period. After this, after completion of 5 years, it can be extended again in the same manner.

Where can you open PPF account?

PPF account can be opened in any government or private bank. Apart from this, you can also open an account in any post office branch of your city. There is also an option to open an account for a minor. However, the parents’ holding on behalf of the minor remains for 18 years. According to Finance Ministry rules, a Hindu Undivided Family (HUF) cannot open a PPF account.

How will Rs 5000 become Rs 26.23 lakh?

Currently 7.1% interest is being given in Public Provident Fund. Interest is calculated annually. But, it is decided on quarterly basis. There has been no change in its interest rates for quite some time. Let us assume that if you invest at the same interest rate for 15 or 20 years, a huge corpus will be created at different amounts. You can see the calculations below.

Monthly InvestmentYou will get this much money in 15 years (Rs)You will get this much money in 20 years (Rs)You will get this much money in 25 years (Rs)
10003.185.248.17
20006.3710.4916.35
30009.5515.7324.52
500015.9226.2344.88
10,00031.8552.4581.76
12,50039.8265.57₹1.02 crore

Comments

Post a Comment

Popular posts from this blog

Senior Citizen Train Ticket Discount: Government has issued a new statement regarding giving discount to senior citizens on train tickets, know the details here

Image
  Senior Citizen Train Ticket Discount: Once again a demand has been made in the Lok Sabha to give discount to senior citizens on train tickets. Senior Citizen Train Ticket Discount:  Railways has withdrawn the discount given to senior citizens on train tickets since the Corona period. However, from time to time there has been a demand to restore this concession given to senior citizens in trains. Even in the winter session of the Lok Sabha, some members raised the demand for increasing fare concessions and facilities for senior citizens traveling in trains. However, even before this, Railway Minister Ashwini Vaishnav has told in the Lok Sabha that during the train journey, every passenger is given an average subsidy of 53 percent on the train ticket. Apart from this, he also told who gets discount on tickets while traveling by train. Demand for discount in train tickets raised again During Zero Hour in the House, Janata Dal (United) MP Kaushalendra Kumar said that before the ...
Read more

Cash Transaction Rules: Income tax rules on cash transaction between Husband-Wife and Son-Father, know rules

Image
  Cash Transaction Rules: Income tax keeps an eye on our every transaction. But is there any tax on cash transactions or can Income Tax send a notice? Or how much cash transaction can take place between you and your wife or between father and son? If you also have these questions in your mind, then let us know their answers… If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family. Income tax sends notice? According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the I...
Read more

Have a Current/Savings Bank Account? Know the Cash Deposit Limits under Income Tax Act to avoid Penalties and Notices

Image
  Adhering to cash deposit and withdrawal limits is crucial to remain compliant with the Income Tax Act in India. This article aims to elucidate the various facets of cash-related regulations, encompassing savings and current accounts, fixed deposits, credit card bill payments, real estate transactions, and more.  Cash Deposit Limits in Savings and Current Accounts The Indian Income Tax Act imposes specific regulations on significant cash deposits in savings accounts. Individuals accumulating INR 10 lakh or more during a fiscal year must notify tax authorities.  For current accounts, this threshold is set higher at INR 50 lakh. Although not immediately taxed, financial institutions report transactions exceeding these limits.  Cash Withdrawal and TDS under Section 194N  Section 194N outlines TDS rules for cash withdrawals. A 2% TDS is levied on withdrawals exceeding INR 1 crore within a fiscal year. Non-filers face a 2% TDS on withdrawals over INR 20 lakh and a 5...
Read more