New Delhi: Public Provident Fund (PPF) is considered to be a safe investment scheme with guaranteed returns. It is referred to as an investment which enables a depositor to accumulate retirement funds while also reducing yearly taxes. The government has fixed the current PPF interest rate at 7.1 per cent. PPF investment plan is apt for people not willing to take stock market risks. While the returns may not be very high, it comes with a stability factor.
PPF calculator
If an investor makes a monthly investment of Rs 500 in PPF account, and keeps investing for 15 years in the Public Provident Fund, the amount accumulated is Rs 1,57,785, out of which the total deposit will be Rs 90,000 and Rs 67,784 will be the total Interest earned.
Let’s assume a person begins investing Rs 5000 a month, the depositor will be entitled to get Rs 15,77,841 on maturity, which would include total deposit of Rs 9,00,000 and the total interest will be Rs 6,77,840.
Let’s see what will be the maturity amount if the monthly investment is raised to Rs 10000.The person would get a lump sum of Rs 31,55,680. The total deposited amount will be Rs 18,00,000 and interest 13,55,680.
PPF tax and other benefits
PPF comes under the Section 80C of the Income Tax Act 1961 where in an individual can invest a maximum of Rs 1.5 lakh every year and get a tax deduction on the amount. PPF comes under the EEE (exempt-exempt-exempt) scheme. The principal, interest and maturity amounts are free from taxes.
The minimum deposit in PPF scheme is Rs 500 and maximum deposit Rs 1,50,000 in a financial year. The loan facility is available from 3rd financial year upto 6th financial year. The PPF withdrawal is allowed every year from 7th financial year.
After maturity, account can be extended for any number for a block of 5 years with more deposits in the PPG account.
PPF calculator: Public Provident Fund (PPF) current interest rate 7.1 per cent. PPF is considered to be safe investment. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
