Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Tuesday 10 October 2017

PPF - What you should know


PPF is a risk- and tax-free product and enjoys the exempt-exempt-exempt (EEE) tax status. This means the contribution, accumulation and withdrawal are all exempt from tax. You can invest a minimum of Rs.500 and a maximum Rs.1.5 lakh in one financial year and this entire Rs.1.5 lakh qualifies for Tax deduction under section 80C of the Income-tax Act, 1961. The initial tenure is 15 years, with the option to extend for five years at a time after completion of this period. The returns are pegged to the average government securities (G-secs) yield. Hence, every year the return on your investment may vary. For 2017 - 2018 financial year, it is offering 8.1% per annum.

Since PPF is a long-term instrument, the interest on your account has more time to compound. Also, you can avail a loan on your PPF between the third and the sixth financial years. When you take a loan, the amount is restricted to 25% of the balance in your PPF. You can avail the loan at 2% higher than the PPF interest rate. The loan has to be repaid in 36 months.

PPF has the ability to generate real return thanks to its tax-free status. So, when it comes to PPF you need to stick to your asset allocation and use it as a tool to maximise your long-term debt investment.

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

No comments:

Post a Comment

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Popular Posts

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications