PPF Investment Tips: The Public Provident Fund (PPF) scheme is a popular long-term investment option backed by the Government of India that provides security with attractive interest rates and tax-free returns. Tax exemption under 80C can be availed through PPF.
Income Tax:
After getting taxable income, people also adopt many measures to save tax. People invest in many schemes so that tax can be saved. One of these Public Provident Fund is also included. Tax exemption can also be availed by investing in PPF scheme. However, if money is invested in the PPF scheme for tax saving, then some things should be kept in mind.
ppf scheme
Public Provident Fund (PPF) scheme is a popular long term investment option backed by the Government of India that offers security with attractive interest rates and tax free returns. Tax exemption under 80C can be availed through PPF. Not only is the interest earned on PPF investment tax-free under PPF, but PPF also offers other tax benefits under Section 80C of the Income Tax Act.
ppf benefits
For example, if you invest ₹1.5 lakh every year in a financial year, you can claim tax exemption. However, PPF comes with a lot of advantages. At the same time, there is a lock-in period of 15 years under this scheme, which is a very long period. However, it allows you to withdraw some amount after 5 years. In such a situation, if you are investing money in PPF only to save tax, then you should know about its lock-in period.
ppf interest rate
The current PPF interest rate is 7.1% per annum. The interest rate given by the Ministry of Finance is calculated between the fifth and the last day of every month, whichever is the lowest. At the same time, the rate of interest is subject to change as per the notification issued through the Ministry.
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