PPF Update: Today is a special day for PPF investors, if this work is not done then there will be loss – why 5th april deadline is so crucial for ppf investors know detail here
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If you want to invest in PPF then 5th of every month is very important. You should put money in PPF account from 1st to 5th in any case. Actually, interest in PPF is calculated on the minimum balance of the account till the 5th of every month. If you deposit money by the 5th of every month, then your minimum balance increases and you get more interest. PPF is called a scheme with triple tax benefit. This means that if you invest up to Rs 1.5 lakh in a year, then there is no tax on the interest received on it and the entire amount received on maturity.
how much will be the benefit
Suppose you have a balance of Rs 50,000 in your PPF account on April 5, 2023 and you deposited Rs 10,000 on April 6, 2023. Interest will be available on minimum balance as per PPF rules. Means between April 5 and April 30, 2023, the minimum balance in the account was Rs 50,000. You will get interest only on this. Means for April 2023, you will not get interest on Rs 60,000. If you had deposited the same amount a day earlier i.e. on April 5, you would have got Rs 60,000 as interest.
PPF is a post office scheme. The interest rate of post office schemes is reviewed every quarter. The new rates for the April-June quarter were announced on March 31. In this, the interest rate of most of the schemes has been increased. But there has been no change in the interest rate of PPF. Only 7.1 percent has been kept in this. If an investor deposits Rs 1.5 lakh in a lump sum PPF account between April 1 and 5, he will get a maximum interest of Rs 10,650. If he does this after April 5, then he will get interest for 11 months only, which will be Rs 9,762.50.
How much will you get in 15 years
PPF scheme is a long term investment scheme and is based on the principle of compounding interest. Its lock in period is 15 years. If an investor makes the maximum investment between April 1 and 5 every year, then he can get a maturity amount of Rs 40,68,209 after 15 years. His total deposit in 15 years will be Rs 22,50,000 and the interest on it will be Rs 18,18,209. To keep the account active, you will have to deposit at least Rs 500 in the account annually, while a maximum of Rs 1.5 lakh can be deposited in a financial year (April to March). If you put more than the annual limit of Rs 1.5 lakh in PPF account, then you will not get interest on the extra amount and you will not be able to take tax exemption on it under section 80C.
It is a long-term investment scheme of the Central Government, which has been provided in the PPF Act, 1968. PPF is a 15-year maturity scheme, which can be extended for as long as you want for 5-5 years. Money can be added to the PPF account only a maximum of 12 times in a year. Many investors invest a lump sum amount instead of repeatedly investing money. If an investor has opened a PPF account in April 2008, it will mature in April 2023.
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