PPF Scheme: Save 50 thousand every year, 13.5 lakh government will pay tax absolutely zero

PPF Scheme: Every person wants his hard -earned money to be invested at a safe place, where he not only gets guaranteed but also does not increase the tax burden.In today's time, when there are many types of risky investment in the market, PPF is considered the most trusted scheme for the common people.If you save only 50,000 rupees in it every year, then the government guarantees that after 15 years you will get about 13.5 lakh rupees.The tax on this is also absolutely zero, that is, the whole money will be yours.

What is ppf scheme

The PPF is a long-term saving scheme run by the Government of India.It is specially designed for middle class family and people who want safe and stable returns.In this, the government fixes the interest rate every year and your money increases accordingly.You can easily open it to a post office or any bank.The most important thing is that this account comes completely under government guarantee, so your investment in it can never sink.

How much investment and how much benefit

If you put 50,000 rupees in this account every year, then your total deposit will be Rs 7,50,000 on investing continuously for 15 years.The current interest rate is 7.1%, according to which you will get around Rs 6,06,070 as interest.That is, your account on maturity will be Rs 13,56,070.This is just an example, if you deposit up to Rs 1.5 lakh annually, then your return will be many times more.This is the reason that PPF is considered a reliable wealth creation tool for small investors.

Full advantage of tax

The biggest advantage of PPF is that you get triple tax benefits in it.The first advantage is that you get a discount of up to Rs 1.5 lakh under Section 80C of Income Tax Act on the amount of investment you invest in PPF every year.The second advantage is that even the interest that is added to the account every year is not taxed.And the third advantage is that all the money will be received on maturity, it will be completely tax-free.This means that the government gives you full advantage and there is no tax burden on your investment.

Why long term is necessary

The specialty of PPF is that it is a long-term scheme.Its maturity takes place after 15 years, that is, if you start investing, it will have to run for at least one and a half decades.In the beginning you may feel that the money is growing slowly, but the real magic is of compounding.The more time the money remains in the account, the more interest you will get.There is an option to withdraw money in the middle, but the real benefit is only when you continue it for 15 years.If you want, after maturity, you can also extend it forward in the 5-5 year block and increase your money faster.

Who can open the account

Any citizen of India can open a PPF account.This account is available in both banks or post offices.The minimum investment in this is Rs 500 annually and a maximum of Rs 1.5 lakh can be deposited annually.This scheme is especially beneficial for salary class and self-improid people, because it not only has safe savings but also provides great relief of tax.Even parents can open accounts in the name of their children and prepare a strong fund for their future.If you want your money to be safe, increased continuously and gets complete exemption from tax, then PPF is a great option for you.Getting Rs 13.5 lakh after 15 years on depositing just Rs 50,000 every year is a great investment scheme in itself.This is special for those who want to stay away from risk and want a guaranteed return.So if you have not yet opened the PPF account, do not delay and make your future safe by connecting your savings with this scheme.Disclaimer: This article is written only with academic purpose.The information given in it is not an investment advice.Always consult your financial advisor before investing.