For the financial year 2024-25, you have to make tax saving investment by 31 March 2025. If you want to save tax along with safe investment, then you can invest in Public Provident Fund (PPF) scheme. At present, 7.1% annual interest is being given on PPF account. Apart from this, you also get the facility of loan on PPF account. We are telling you about 5 such special things. So that you too can earn profit by investing in this scheme… 1. Guarantee of government security
PPF is directly regulated by the Central Government and the interest is also decided by the government. Therefore, there is a complete guarantee of security on investment in the scheme. If you are looking for an investment with tax exemption and good returns, then investing in PPF is the best. Higher returns than PPF are available only in Sukanya Samriddhi Yojana and Senior Citizen Scheme. But, not everyone can invest in it. 2. Get the benefit of tax exemption
Investment in PPF comes under the category of EEE. That is, you get the benefit of tax exemption on the entire investment made in the scheme. Also, no tax is to be paid on the interest received from the investment in this scheme and the entire amount of investment. No tax is to be paid on the amount received on maturity. 3. Loan facility is available on PPF account
You can also take a loan on deposits in PPF account. You are entitled to take a loan from PPF from one financial year after the end of the financial year in which you have opened the PPF account till the end of the fifth financial year. If you have opened a PPF account in January 2020, then you can take a loan from 1 April 2021 to 31 March 2025. You can take a maximum loan of 25% on the deposit. The interest rate for the loan is only 1% higher than the interest received on PPF. 4. You can invest for as long a period as you want
The maturity period of a PPF account is 15 years. But you can extend it as much as you want. If the money is not needed immediately, then you can extend your account after account holder maturity. This will help you in creating a bigger fund. 5. The scheme is easy to run
In this scheme, you have to invest a minimum of 500 rupees in a year. That is, if you are short of money in any year. At the same time, you can invest a maximum of 1.5 lakh rupees in a year. You can deposit money in a maximum of 12 installments in a financial year. Currently, it is getting 7.1% annual interest. You will get 3.25 lakh rupees by investing thousand rupees every month
Through this scheme, you can easily create a big fund. By investing thousand rupees every month in PPF, you will get 3.25 lakh rupees after 15 years. At the same time, if you invest 2 thousand rupees per month, then you will get about 6.50 lakh rupees after 25 years. Who can open a PPF account?
Any person can open this account in his name in any post office or bank. Apart from this, an account can also be opened by any other person on behalf of a minor. Where can one open a PPF account?
A PPF account can be opened in any post office or bank in one’s own name and by any other person on behalf of a minor. However, as per the rules, more than one PPF account cannot be opened in the name of a Hindu Undivided Family (HUF).
