ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • FIIs buy shares worth Rs 3,040 cr on August 12, highest this month; net purchase at Rs 14,841.66 crore
  • Independence Day Special: How investment habits, preferences of people have changed over the past 75 years
  • Laal Singh Chaddha Vs Raksha Bandhan box office collection: How much money Aamir Khan, Akshay Kumar movies made in two days
  • Money Guru: As India gears up for 75th Independence Day celebration, where should you invest for benefit in New India? Expert de
  • 31 new malls coming soon in India: Set to spawn massive jobs, employment opportunities
Read in App
Business News » Personal Finance News

PPF Account: Invest Rs 100, Rs 150, Rs 200, turn your kitty into lakhs - You don’t have to pay taxes on gains either

If you looked closely at Public Provident Fund (PPF) scheme then you would know that it is also a better scheme for young citizens who have reached 18 years of age, which is also the minimum requirement for the scheme.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
PPF Account: Invest Rs 100, Rs 150, Rs 200, turn your kitty into lakhs - You don’t have to pay taxes on gains either
Investments pay off in a much better fashion if kept for the long-term. Photo: Reuters

Investments pay off in a much better fashion if kept for the long-term, especially if you want to enjoy your retirement just chilling around at home or vacation without any stress for money. For retirement, government's Public Provident Fund (PPF) scheme is the best. The benefits of PPF would be guaranteed-return, tax exemptions, higher interest rates and no risk. Such investments are always eyed by many investors. But interestingly, while PPF does to cater the retirement needs of account holders , however, if looked closely it is also a better scheme for young citizens who have achieved 18 years of age, which is also the minimum requirement for the scheme. 

Mostly at the age of 18, youth are studying in college which also indicates that their investment amount will be far lesser than the working groups. The amazing fact about PPF apart from above-mentioned ones, is that it is available easily and can be opted by anyone above 18 years of age who receives just a little pocket money. In PPF, one can invest as little as Rs 42 per month. Now assuming, a person generally starts to begin working from 21-22 years of age completely, before that he or she can use their pocket money for instance Rs 100 or Rs 150 or Rs 200. Remember, you can always increase your investment value ahead while receiving more income. But even if you do not wish to increase your monthly PPF contribution, you can still ear lakhs on retirement. 

Here’s how!

At present, PPF offers 8% interest rate to investors, which is still attractive compared to fixed deposits. 

Example 1: If you begin PPF investment from 18 years of age, by investing Rs 100 per month at an 8% interest rate but opt for 50 years tenure - then your gains will be Rs 7,43,606. 

(Image source: ClearTax Calculator)

Example 2 - If investment is increased by Rs 50 to Rs 150 at the same age with similar tenure and interest rate, then your gains will be over Rs 11.15 lakh.

(Image source: ClearTax Calculator)

Example 3 - If decided to invest Rs 200 at same age with same tenure and interest rate, you will add then over Rs 14.87 lakh in your kitty. 

(Image source: ClearTax Calculator)

Not just youths having pocket, this investment is best suited for those who do not have hefty earnings.

Apart from affordable and attractive gains, PPF gains are tax-free. Firstly, any deposits made in PPF can claim tax-exemption of Rs 1.5 lakh under section 80C of the Income Tax Act. If the PPF account continued till maturity period, then both deposits and interest will be tax free during withdrawal. You can begin a PPF account at any nearby bank notified by government. Maximum investment in PPF Rs 1.5 lakh with minimum being Rs 42. Premature payment is allowed only after the account or the account of the minor account holder of whom he/she is the guardian has completed five financial years.

According to HDFC Bank webesite, a PPF account matures in 15 years, and you can extend it in blocks of 5 years each. You must extend the tenure within one year of maturity. There are no limit on tenure extension.

You can decide your own investment amount for PPF account along with tenure. The higher the contribution, the higher will be your gains. Also note, PPF has the potential to make an investor a crorepati as well! 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Public Provident Fund (PPF)PPF accountPPF account holderscrorepatiPPF Investment
Written By: ZeeBiz WebTeam
Updated: Tue, Jun 25, 2019
09:29 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
 Paisa Wasool: PPF account benefits | Tips & Tricks | Earn Maximum Interest - TOP 2 Things Paisa Wasool: PPF account benefits | Tips & Tricks | Earn Maximum Interest - TOP 2 Things
Want to avail benefit of tax exemption? Invest in this India Post scheme Want to avail benefit of tax exemption? Invest in this India Post scheme
PPF account ALERT! Saving money? Know who can withdraw amount after demise of the holder - Check details PPF account ALERT! Saving money? Know who can withdraw amount after demise of the holder - Check details
Income Tax Return (ITR) filing: This much TDS you pay on income from Post office savings, PPF, Sukanya Samridhi, Kisan Vikas Patra saving account; but there's a catch Income Tax Return (ITR) filing: This much TDS you pay on income from Post office savings, PPF, Sukanya Samridhi, Kisan Vikas Patra saving account; but there's a catch
How to become rich: This tax season open a PPF account, this is what ICICI Bank offers you How to become rich: This tax season open a PPF account, this is what ICICI Bank offers you

LATEST NEWS

Azadi Ka Amrit Mahotsav: ITC launches integrated initiatives to support Har Ghar Tiranga campaign to mark 75 years of Independence

Karthikeya 2 release date: Nikhil SIddharth movie releases today; what you need to know about sequel of 2014 mystery movie

HDFC Bank, HDFC Ltd get CCI's nod for merger

Shriram Properties Q1 Results 2022: Profit jumps on better sales in June quarter | Check June quarter highlights

Laal Singh Chaddha Vs Raksha Bandhan box office collection: How much money Aamir Khan, Akshay Kumar movies made in two days

Tesla stock split date 2022 news: Record date, split ratio, history, TSLA Nasdaq share price - All details

Delhi Metro Update For Independence Day 2022: What DMRC said on train service, routes and parking | Full details here

Hinduja Global Solutions Q1 results: Profit at Rs 73.2 cr; firm says strong demand for 'customer experience' biz

Raju Srivastava health update: What hospital, family members said

Cultivation of maize, mustard, moong to be promoted: ICAR

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV