PPF – A great investment plan with tax savings

PPF – A great investment plan with tax savings

PPF stands for Public Provident Fund.

Those who want to merge in tax saving as well as investment can benefit greatly by joining this scheme.

Investments made in PPF can be deducted for income tax benefit under Section 80C.

Launched in 1968, this scheme is considered as a reliable traditional investment scheme. It is also worth noting that this is a plan without any investment risks.

You can know the investment security of this scheme from the fact that no one else can claim the amount invested in this scheme as a lien and even the court cannot warrant payment in return for the investment.

Anyone who is an Indian citizen can join this scheme and benefit from it.

The scheme has an investment tenure of 15 years.

You can invest monthly or annually as per your convenience.

In this scheme every year minimum Rs. 500/- should be invested. Otherwise the account will freeze. Then Rs. 50/- will be required to activate the account on payment of penalty.

You can invest up to maximum Rs. 1.5 lakhs. Each year making a maximum of Rs. 1.5 lakh investment can be divided into as many installments as you like. It can also be paid in one installment, Or monthly Rs. 12,500/- can be divided into monthly installments and planned.

You invest in this scheme should also know the amazing results of this scheme.

If you invest 1.5 lakh every year, the interest earned from 12th year alone will be 1.5 lakh.

The investment period of this scheme is 15 years but after 15 years it can continue to another ten years. Thus every year the maximum amount of Rs. 1.5 lakhs for 25 years, then one crore will be matured at the end.

Have you decided to join this program?

Two passport size photographs, Aadhaar card, PAN card are enough to join this scheme.

You can open an account in Post Office, State Bank of India, Indian Overseas Bank, ICICI Bank, Axis Bank as you like.

Since this is a central government scheme, you can open this account in any of the above without fear and deposit money wherever you open it - post office, government sector bank, private sector bank.

Birth certificate along with the above documents is sufficient for initiation in the name of a minor.

You have the facility of availing loan from the third year after joining this scheme. For this, 2 percent interest is higher than the interest rate of PPF has been levied. This loan should be settled in 36 months.

A maximum of 50 per cent can be withdrawn from the seventh year onwards but it is advisable not to so that your investment can grow more smoothly.

If you want to withdraw after 5 years i.e. before 15 years, there is a penalty of 1%. Needless to say, those who wish to pursue this scheme as a sound investment should not do so.

In this scheme interest is credited to the account once a year on 31st March.

For more details and investment you can approach the post office or the banks mentioned above.

If you found this investment specific information useful, please write your comments. Also mention any other information required about the investment. This blog is waiting to serve you in a useful way.

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