The Public Provident Fund (PPF) scheme is the best. Any citizen of India can invest in it. The biggest thing is that the benefits received in it remain everyone’s choice. The benefits of investing in PPF are told by the banks and post offices themselves. Good interest (PPF Interest), tax free investment, the money received on maturity (PPF Maturity) is completely yours. It is an excellent tool from the investment point of view. The maturity period is 15 years. But, you can give extension to the investment even after 15 years. If you give extension, then your return will become rocket and the initial investment of Rs 5000 will become more than 26 lakhs.

PPF: These 3 tricks can make you rich

At the time of maturity, you get 3 options. It is very important to understand these 3 options. First, withdraw your money after maturity. Second, even if you do not withdraw, you will keep getting interest. Third, you can give an extension for 5 years with new investment. Let’s understand how and what to do.

1. Withdraw the entire money on maturity

Withdraw the amount deposited by you and the interest on the maturity of the PPF account. In case of account closure, the entire amount will be transferred to your account. The money and interest received on maturity will be completely tax free. Apart from this, income tax exemption is available on investment up to 1.5 lakh every year. You will not have to pay any tax on whatever money you have deposited during the entire tenure.

2. Increase PPF investment for 5 years

The second option is to increase the investment after maturity. The scheme gives the option of account extension in tenures of 5 years each. However, if you want an extension for the next 5 years, you will have to inform the bank or post office 1 year before the maturity of the PPF account. The good thing is that the rule of pre-mature withdrawal does not apply at the time of extension and you can withdraw money anytime.

3. Extend the scheme without investment even after maturity

The third option in PPF account, even if you do not choose both the above options, the account will continue after maturity. There will be no need for new investment in this. The maturity will automatically increase for 5 years. But, the biggest advantage will be that you will continue to get interest on the deposited amount during this entire period. After this, it can be extended again in the same way after completion of 5 years.

Where can you open a PPF account?

PPF account can be opened in any government or private bank. Apart from this, you can also open an account in any post office branch of your city. There is also an option to open an account for a minor. However, the parents’ holding on behalf of the minor remains for 18 years. According to the rules of the Finance Ministry, a Hindu Undivided Family (HUF) cannot open a PPF account.

PPF Calculator: How will ₹5000 become 26.63 lakh rupees?

Currently, 7.1% interest is being given in the Public Provident Fund. The interest is calculated annually. But, it is decided on a quarterly basis. There has been no change in its interest rates for a long time. Let us assume that if you invest at the same interest rate for 15 or 20 years, then a large corpus will be created at different amounts. You can see the calculation below.

The post PPF Calculator: Invest Rs 5000 monthly and get returns up to Rs 26 lakh, check PPF interest first appeared on Rightsofemployees.com.

Suppose your wife’s PPF is maturing in April. She wants to transfer Rs 23 lakh to your senior citizen savings account. Apart from this, she wants to give Rs 7 lakh to your daughter. What will be the impact on your tax in this case?

Tax arithmetic of PPF maturity

If you, your wife and your daughter are eligible for tax as residents in India. Your daughter is 18 years or older, then these tax implications will apply on receipt and transfer of PPF maturity amount. The PPF maturity amount that was deposited only by your wife will be completely tax-free in her income.

Transfer as a gift

If your wife transfers the PPF maturity amount to you and your daughter as a gift, then there will be no tax on it. Since gifts received from spouse and parents are not taxable, the amount that you and your daughter will receive will be tax-free in the hands of both. The interest that will be received from the gifted funds will come under the “clubbing provision” under the Income Tax Act.

Will be added to this income

This means that the interest will be added to your wife’s income and will be taxed as per her tax rate. However, if you reinvest the interest, the other income generated from it will be taxable in your hands. There is no special exemption or deduction for payments made under indemnity bonds under the Income Tax Act.

Related Articles:-

• Train Delay Cancellation Rights: Can you claim a refund if the train is late? Know Here
• Delhi Govt likely to Roll Out 2500 rupees mahila samman yojana on womens day 2025
• Govt Education New Policy: Now these children will have ‘Digital’ admission in schools, issued circular
• New Passport Rules: Central Govt makes THESE amends, 5 key changes you must know about
• UPI Lite Transaction Limit: NPCI has announced new limits for UPI Lite, Auto top-up facility also applicable

The post Transferring PPF maturity funds? Know the tax implications before you do first appeared on Rightsofemployees.com.

Good return on investment and tax saving option is available in the scheme. If you are doing retirement planning or want to earn good income from investment in long term, then you can choose this scheme. The scheme is more popular by the name of PPF.

Why is PPF considered the best option?

Public Provident Fund (PPF) is most popular because the money deposited in it, the interest received and the amount received on maturity (PPF Maturity) are completely tax free. Meaning it is kept in the EEE category. EEE stands for Exempt. There is an option to claim tax exemption on deposits every year. No tax has to be paid on the interest received every year. Once the account matures, the entire amount will be tax free.

Who can invest in PPF?

Small Savings Scheme (Small Savings Scheme) Any citizen of the country can invest in PPF. It can be opened in post office or any bank. A minimum investment of Rs 500 and a maximum of Rs 1,50,000 can be made every financial year. Interest is calculated on an annual basis. However, the interest is fixed on a quarterly basis.

At present, 7.1% interest is being received on PPF. The maturity period lasts for 15 years. There is no facility to open joint account in the scheme. However, a nominee can be made. There is no option to open PPF account even in the name of HUF. In the case of children, the name of the guardian is included in the PPF account. But, it remains valid only till the age of 18.

How can PPF really make a millionaire?

PPF is such a scheme, in which it is easy to become a millionaire. This requires regular investment. Suppose you are 25 years old and you have started PPF. If you deposit Rs 1,50,000 (maximum limit) in the account between 1st to 5th at the beginning of the financial year, then at the beginning of the next financial year only Rs 10,650 will be deposited with interest.

That means on the first day of the next financial year your balance will be Rs 1,60,650. By doing the same again next year, the account balance will be Rs.3,10,650. Because, 1,50,000 rupees will be deposited again and then interest will be received on the entire amount. This time the amount of interest will be Rs 22,056. Because, the formula of compound interest works here. Now suppose 15 years of PPF maturity have been completed, then you will have Rs 40,68,209 in your account. In this, the total deposit amount will be Rs 22,50,000 and Rs 18,18,209 will be earned only from interest.

If you want to become a Crorepati then invest even after maturity

PPF was started at the age of 25. At the maturity of 15 years, at the age of 40, an amount of more than Rs 40 lakh is in hand. But if the planning is for a long period, then the money will grow faster. After maturity in PPF, the account can be extended for 5-5 years extension. If the investor extends the PPF account for 5 years, then by the age of 45, the total amount will be Rs 66,58,288. The investment in this will be Rs 30,00,000 and the interest earned will be Rs 36,58,288.

At what age to become Crorepati?

The goal of becoming a millionaire will now be fulfilled. PPF account has to be extended once again i.e. for another 5 years till 25 years. Again an investment of Rs 1,50,000 will have to be made annually. At the age of 50, a total of Rs 1,03,08,014 will be deposited in the PPF account. The investment in this will reach Rs 37,50,000 and the interest will reach Rs 65,58,015.

Earning of interest will cross 1 crore

Understand the second feature of PPF that how many times you can do the extension of 5 years. Now once again if the account is extended for 5 years then at the age of 55 you will have 1 crore 54 lakh 50 thousand 910 rupees. The investment in this will be only Rs 45,00,000, but the interest income will exceed Rs 1 crore and the total income will be Rs 1,09,50,911.

Will invest 2 crore 26 lakh 97 thousand 857 rupees for 35 years

If you have invested in it for retirement, then PPF will have to be extended once again for the last 5 years. That means investment will continue for 35 years in total. In this case, maturity will be at the age of 60. In this case, the total deposit amount in the PPF account will be Rs 2 crore 26 lakh 97 thousand 857. The total investment in this will be Rs 52,50,000, while the income from interest will be Rs 1 crore 74 lakh 47 thousand 857.

If you want to double your money then invest like this

When you retire at the age of 60, there will be no tax on the huge amount deposited in PPF above 2 crores. Generally, if you earn such a huge amount from somewhere else, then you will have to pay heavy tax on it. If both husband and wife run PPF account together for 35 years, then the total balance of both will be Rs 4 crore 53 lakh 95 thousand 714.

The post PPF Super Investment Plan: You will get Rs 1,74,47,857 only from interest and Rs 2,26,97,857 on maturity first appeared on Rightsofemployees.com.