PPF Investment benefits- Most people try in the last few days to make such an investment, which can save savings as well as tax.
The Financial Year is about to end. There are only 6 left from tax benefits to new investment. After March 31, you will not be able to invest for the current financial year. This will directly affect your tax. Most people try in the last few days to make such an investment, which can save savings as well as tax. In such a situation, there is a search for such instruments, where not only the money is safe, but also you can get a good return on investment. One such instrument is Public Provident Fund ie PPF. This is such an investment, which makes it different from other small savings schemes. So what benefits do you get .. Let us know…
1. Get better interest on investment
Earlier FD was the best instrument in terms of returns or interest. But, if we talk about the returns, then at this time the most benefit is found in EPF, where there is 8.50 per cent interest. This fund is meant for private and government employees. Started a similar product for the common public, Public Provident Fund i.e. PPF. PPF coming under Small Savings Scheme is currently getting 7.1 percent interest. This offer is till 31 March. Interest rates are fixed on a quarterly basis. There may be different interest on the investment made from April 1.
2- The benefit of tax exemption
Those investing in public provident funds also get the benefit of tax exemption. Up to a maximum of Rs 1.5 lakh is waived for investing in PPF under Section 80C of the Income Tax Act. The most important thing about PPF is that the money earned on interest and maturity earned in the scheme remains completely tax free.
3- Meets Security Guarantee
PPF is a government scheme. Which the Government of India directly regulates and pays interest. Therefore, there is a complete guarantee of security on the investment of the scheme. If you want to invest in a scheme with tax exemption and good returns, then PPF is best for you. Higher returns than PPF are available only in Sukanya Samriddhi Yojana and Senior Citizen Scheme. But, not everyone can invest in it.
4. Interest changes on a quarterly basis
Investing in PPF is also beneficial because, its interest rate changes on a quarterly basis. Meaning if you received less interest in a quarter, it may be that the interest rate will be higher in the next quarter. Also, interest on interest i.e. Compounding interest will also be benefited.
5- Long investment will make money
Most people believe in running the investment for a long period. The advantage of this is that your regular investment helps you in preparing a big fund. For example, if someone has invested 1 lakh rupees every year in a PPF account, then in 15 years your investment will be 15 lakh rupees. Interest on this will earn 12,12,139 rupees. That means, with the investment in the scheme, you will have a total deposit of 27 lakh 12 thousand 139 rupees.
