A Public Provident Fund (PPF) is a strategy for regularly depositing a predetermined amount of money to build a fund for life after retirement. To open a PPF account, a deposit of Rs 100 must be made in accordance with the regulations at any nearby post office or bank. The account must be credited annually with at least Rs 500.
The exempt-exempt-exempt classification of PPF accounts entitles taxpayers to a Section 80C income tax break for a 1.5 lakh annual deposit. During the 15-year lock-in period, the maximum amount that can be deposited in a single deposit—or in 12 installments—is 1.5 lakh.
How can a PF account save one crore rupees?
A PPF account will earn interest at a rate of 7.1% every quarter. It’s possible to save Rs if someone invests their money consistently. 1 crore when the ventures arrive at development.
The PPF account has a maturity limit of 15 years, but the Hindustan Times’ sister website Livemint learned from tax and investment expert Jitendra Solanki, who is registered with SEBI, that the account can be extended indefinitely in blocks of five years. This suggests that a shareholder can continue to use the PPF option without withdrawing any cash. The depositor can choose to extend their PPF account for the next five years with or without an investment.
However, there are experts who recommend selecting the PPF account extension with investing option. To get revenue on both the PPF development sum and the new speculation, Kartik Jhaveri, head of abundance at Rise above Experts, exhorts picking an expansion with venture.
When a person with income opens a PPF account at the age of 30, they will have invested for a total of 30 years if, after the required 15-year locking period, they triple their investment by 15 years. Let’s say that 1.5 lakh dollars are invested annually into a PPF account. Assuming the interest rate stays at 7.10% each year for the full 30 years, the last maturity sum will be 1.54 crore.
