Income Tax: Many wonderful schemes are being run by the government for the people. People are also being encouraged to invest and save through these schemes.
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At the same time, the budget 2023 is also going to be presented by the central government soon. The government can make many announcements in this budget. Meanwhile, a scheme of the government is quite popular, in which tax exemption is also available. Investors can invest in this scheme of the government annually and get better returns. At the same time, tax exemption is also available in this scheme.
Long term planning We are talking about Public Provident Fund (PPF). Public Provident Fund (PPF) scheme is a very popular long term savings scheme in India due to its combination of tax savings, returns and safety. The PPF scheme was launched in 1968 through the National Savings Institute of the Ministry of Finance. The objective of this scheme is to help people to make small savings and give good returns on savings.
Tax exempt
PPF plans offer attractive interest rates and no tax is to be paid on the returns generated from the interest rates. Which saves a lot. On the other hand, when a person withdraws money from the PPF account, then the amount saved as well as the interest generated is exempt from tax.
Can’t close before time
Invest in this scheme for 15 years and after that tenure can be extended for 5-5 years. At the same time, a minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually in this scheme. Whereas the maturity amount depends on the investment tenure. However, you cannot close the Public Provident Fund account prematurely.
Tax Benefits
Public Provident Fund is one such investment which comes under the Exempt-Exempt-Exempt (EEE) category. This means that the amount you deposit in the Public Provident Fund will be deductible under section 80C of the Income Tax Act. When you withdraw the money, the amount deposited and interest will be exempt from tax. It should be noted that you cannot close the Public Provident Fund account before maturity.
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