If you are thinking of investing then Public Provident Fund (PPF) is a great option. It is not only safe but you also get the benefit of tax exemption by investing in it. The risk in investing in PPF is almost zero as it is fully protected by the government. Today we will tell you about the various benefits of investing in it.
For whom are people investing in PPF very beneficial?: –
- Self-employed professionals and employees not covered by the EPFO.
- Those who do not have jobs or businesses, no organized structure.
PPF To invest in Benefits of
Rate of interest
- The central government revises the interest rate on PPF account every quarter.
- The interest rate is usually 7 per cent to 8 per cent, which may increase or decrease slightly depending on the economic situation.
- Currently, the interest rate is 7.1 percent. This is more than the fixed deposits of many banks.
- There is a 15-year period for subscribers after which the amount that comes under tax exemption can be withdrawn.
- Subscribers also have the option to extend it for 5 more years.
- They can also choose whether to continue the contribution or not.
- There is a tax benefit under Section 80C of the IT Act.
- A deduction of up to Rs 5 lakh can be taken on the amount invested in the scheme.
- Both the interest and maturity amount earned in PPF are tax deductible.
- This scheme is supported by the government. Therefore, investment in it is completely safe.
- There is a sovereign guarantee on the interest earned.
- Subscribers can take loans on PPF account at the appropriate interest rate.
- You can take advantage of the loan in the third and sixth year by opening an account.
- It is especially beneficial for those applying for loans in a short period.
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