The PPF scheme is being run through the government. People have to invest for a long time through Public Provident Fund. Along with this, there is also a lock-in period. Through this lockin, people have to deposit money in PPF for 15 years. Only after this the maturity amount will be received. However, some things should also be taken care of in this.

Change in interest

If an account has been opened in PPF, then a lot of care should be taken regarding its interest. Actually, interest is given at a fixed rate in PPF account. The interest rate offered in PPF account is reviewed every three months. On the other hand, if necessary, then the interest given in the PPF account can also be changed.

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Interest rate At present, 7.1 percent interest is being provided annually by the government in the PPF account. At the same time, in this scheme, people have to invest at least Rs 500 in a financial year. Apart from this, people can invest a maximum of Rs 1.5 lakh in this scheme in a financial year.

Although PPF account, people have to take care of one thing very well. Actually, people have to keep in mind that if you are not able to make even a minimum investment of Rs 500 in a financial year, then your PPF account will become inactive. Due to which the interest received in your account is also going to have a big impact.

Minimum balance

In such a situation, make sure to deposit minimum balance in your PPF account every year, so that your PPF account does not become inactive. Apart from this, if the PPF account becomes inactive, then the PPF account can be started back through some penalty amount.

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People get a chance to invest for a long time through the PPF scheme. Along with this, if people want, they can deposit some amount every month. However, if you also invest money in PPF scheme, one important thing should be kept in mind, otherwise you may have to bear the loss.

maturity and interest

Actually, PPF scheme is a long term savings and investment scheme. If money is invested in this scheme, then its maturity is after 15 years. Only after 15 years, money is available in this scheme along with interest. However, one important thing must be kept in mind in these 15 years. At the same time, in this scheme, people are being given annual interest at the rate of 7.1 percent.

Whenever investment is made in PPF account PPF scheme, it is very important to invest at least Rs 500 in this scheme in a financial year. At the same time, a maximum of Rs 1.5 lakh can be deposited in this scheme in a financial year. In such a situation, if a person is not able to deposit even the minimum amount of Rs 500 in this scheme in a financial year, then the PPF account will become dormant.

Minimum Investment

After this, there will be a need to get that inactive account re-acquitted, in which some rupees will also have to be paid as a fine. Apart from this, in the year when you did not even make a minimum investment of Rs 500, people have to face problems regarding the interest received in that year. In such a situation, people should keep in mind that minimum investment should be made in PPF account every financial year so that the PPF account does not become inactive.

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PPF Scheme Latest Update: There is great news for those who open PPF account. If you are also going to open an account in Public Provident Fund, then there is great news for you. Now you will get the benefit of double interest. Information about this has been given by the government. Even today Public Provident Fund Scheme (ppf scheme) is the best option to invest money.

In this, along with better returns, there will be a huge benefit on maturity. Let us tell you how you will get the benefit of double interest-

Will get discount up to 1.5 lakh

PPF investment has been placed in the EEE category. This means that all three investment, interest and maturity amount are completely tax free. If you invest in PPF scheme, you get a deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.

You get the benefit of double interest

If you are married and you open an account in this scheme with your partner, then you can double your investment. In this way you get the benefit of interest on both the accounts.

Know what is the opinion of the expert?

According to the information received from the expert, you have two options for investing in PPF. You can deposit Rs 1.5 lakh in your account and Rs 1.5 lakh in the account opened in the name of your partner. In this way you will get the benefit of double interest on 2 accounts. At the same time, you can also take tax exemption up to Rs 1.5 lakh on any one account. In this case, the limit of your PPF investment will be doubled to 3 lakhs.

Both accounts will be tax free

Whenever you open a PPF account in the name of your partner, both your accounts will be tax free. Along with this, you will get the benefit of interest on both the accounts. Under section 64 of Income Tax, income from any amount or gift given by you to your wife is added to your income.

Married couples will get double benefit

If you are also married then you will get the benefit of double interest in Public Provident Fund Scheme. Explain that when the PPF account of married couples matures, then the income from the initial investment in your partner’s account will be added to your income on a year-by-year basis. This quarter, the government has fixed the rate of 7.1 percent.

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It is also true that our long term goals can be fulfilled only through less income tax and tax savings. Everyone has given their recommendations regarding the budget. The biggest demand from the job profession is to make income up to Rs 5 lakh tax free. Apart from this, there is also a demand to increase the investment limit under Section 80C of Income Tax.

In the recommendation sent by the Institute of Chartered Accountants of India (ICAI), it has been recommended to increase the annual deposit limit of PPF from Rs 1.5 lakh to Rs 3 lakh. Along with the employed, this is also a favorite savings scheme for businessmen. If this step is taken by the government, then it will prove to be the most beneficial announcement for non-salaried people, because such people do not even have the option of investing in EPF.

It is necessary to increase the deposit limit of PPF

In the suggestion sent by ICAI, it was said that it is necessary to increase the deposit limit of PPF. Because it is a safe and tax effective savings scheme. ICAI has also been asked to allow separate deductions on premiums for house insurance, travel insurance, personal accident insurance etc. to encourage tax payers to invest.

50% HRA benefit available in other metro cities as well

When it comes to House Rent Allowance (HRA), tax payers get the benefit of income tax deduction. This benefit is also available on the basis of metro and non-metro cities. Now experts have also suggested that apart from Delhi, Mumbai, Kolkata and Chennai, the benefit of dearness allowance of 50 percent of the basic salary should also be available in other metro cities.

What is PPF?

Public Provident Fund (PPF) is one of the most popular, long-term investment options in India. This is a savings scheme for investors to save for a long time after retirement. According to experts, opening a PPF account in the name of one’s life partner will also double the investor’s PPF investment limit, although the income tax exemption limit will still be Rs 1.5 lakh.

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