Post Office PPF Scheme

• Investment every year: Rs 1 lakh
• Tenure: 20 years
• Interest rate: 7.1%
• Total amount invested: Rs 20 lakh
• Total interest earned: Rs 24,38,859
• aturity amount: Rs 44,38,859

Post Office PPF Scheme

Investment in PPF scheme can be started through post office or any bank. You can deposit at least Rs 500 in the scheme in a financial year. While a maximum of Rs 1.5 lakh can be deposited. Investment can be started by an investor with an investment of Rs.50. Tax deduction is also available on the investment amount under section 80C. Explain that under the IT Act, the amount of interest is tax free.

Benefit of EEE tax exemption on PPF

PPF comes under the category of EEE of tax. That means tax exemption will be available on the entire amount invested in the scheme. Apart from this, the interest received on that investment and the entire amount received on maturity are also tax free. That’s why PPF investment is considered good in terms of long term benefits.

5 year lock in period

For pre-withdrawal, the lock-in period in PPF account has been kept for 5 years. Means money cannot be withdrawn from this account for 5 years after the year of opening the account. After completion of this period, pre-withdrawal can be done by filling Form 2. However, maturity withdrawal cannot be done before 15 years.

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Post Office Public Provident Fund (Post Office PPF Scheme) gives you a chance to become a millionaire. For this you just have to invest Rs 417 everyday. Although the maturity period of this account is 15 years, but you can extend it twice for 5-5 years. Along with this, you also get tax benefit in this scheme. At the same time, the most important thing is that you get 7.1 percent interest annually in this scheme and which also gives you the benefit of compound interest every year. Let us also tell you how this scheme can make you a millionaire.

Know details of post office PPF account

If you invest for 15 years i.e. till maturity and deposit a maximum of Rs 1.5 lakh annually ie Rs 12500 per month and Rs 417 per day, then your total investment will be Rs 22.50 lakh. At the time of maturity, you will also get the benefit of compounding with an annual interest of 7.1%. In this, at the time of maturity, you will get Rs 18.18 lakh as interest. That is, you will get a total of Rs 40.68 lakh.

How will you become a millionaire?

On the other hand, if you want to become a millionaire from this scheme, then you can extend your investment in this scheme for 5-5 times twice after 15 years. By investing Rs 1.5 lakh annually, your total investment will be Rs 37.50 lakh. After maturity, you will get Rs 65.58 lakh with an interest rate of 7.1 percent. That is, after 25 years, your total fund will be 1.03 crores.

Who can open PPF account

Any resident including salaried, self-employed, pensioners etc. can open an account in PPF of the post office.
Only one person can open this account.
You cannot open a joint account in this.
– A minor PPF account can be opened in a post office by a parent/guardian on behalf of a minor child.
– Non-resident Indians cannot open an account in this. If a resident Indian becomes an NRI before the maturity of the PPF account, he can continue to operate the account till maturity.

Required documents of post office PPF account

Identity Proof – Voter ID, Passport, Driving License, Aadhar Card
Address Proof – Voter ID, Passport, Driving License, Aadhar Card
PAN Card
Passport Size Photograph
Enrollment Form – Form E

Know the specialty of PPF account

1. The maximum deposit allowed in a PPF account during a financial year is Rs 1.5 lakh.
2. The number of deposits in Post Office PPF is limited to 12 annually.
3. PPF is an EEE investment i.e. principal amount invested, interest earned and maturity amount are all tax-free.
4. The minimum annual investment required to keep the account active is Rs.500.
5. Interest on Post Office PPF account is compounded annually and is paid on 31st March every year.

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