Public Provident Fund was started by the National Savings Organization in 1968 to promote small savings and investments. PPF account can be opened only by residents in any post office across the nation and in few selected scheduled banks.
Minimum of Rs 500 to Maximum up to Rs 1,50,000 can be invested in a Financiali year. Maturity Period of PPF account is 15 years and can be extended for another block of 5 years with or without contribution. Contribution towards PPF account is exempted under 80C of Income Tax Act up to Rs150000. Customer can avail tax benefit while remitting proceeds into the account, While withdrawing the proceeds at the maturity and Interest accumulated over the years is also exempted from tax. (EEE Benefit of Tax)
PPF account has got various benefits like Risk free return,Tax Deductions, Longer Duration, Compounded Returns and Emergency Withdrawal.
Mentotax recommends to open PPF accounts to start savings small amount in regular interval for 15 to 20 Years. PPF compounded returns are explained in 3 scenarios.
1. Remittted for 15 Years and closed at maturity
2. Remitted for 15 Years and continued for another block of 5 years without contribution
3. Remitted for 15 Years and continued for another block of 5 years with contribution
Assuming Invested 1,50,000 everyyear at 8% interest rate
For any clarifications contact:
Mail: Mentotax@gmail.com
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mentotax@gmail.com
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