Know the big benefit of small savings
Public Provident Fund (PPF) is considered one of the best options for safe investment. It is a long-term investment (PPF investment). Investing in PPF is not only safe, but also offers the full benefit of tax exemption.
New Delhi. Public Provident Fund (PPF) is considered one of the best options for safe investment. It is a long-term investment (PPF investment). Investing in PPF is not only safe, but also offers the full benefit of tax exemption. There is little risk in this for investors. If you want to raise a large fund by investing every month, then the Public Provident Fund (PPF) scheme will be perfect for this. At present, 7.1% interest is being paid annually under this scheme. The maturity period of PPF account is 15 years. When the PPF account matures, you have 3 options. The sooner PPF starts, the more benefit Investment in PPF, interest on it and the amount received on completion of maturity period, all three are completely tax free. Public Provident Fund, the sooner you start, the more benefit you will get. Now the question arises that after 15 years what should be done of the account after maturity? Let us tell you about three options that you can use when PPF matures.First option – close the account and withdraw money The account can be closed after the PPF account matures. Withdraw the entire amount (PPF investment). The entire amount received on maturity will be tax free. It will be directly deposited in your bank account. However, for this you will have to give a form to your bank or post office. Also read: These 9 stocks will be the biggest beneficiaries of RBI’s relief measures, know where to invest
Second option – extend with 5 years with new PPF investment If the PPF account matures, if you do not need the money or if you want to keep it now, then you can extend the account for 5 years. For this, you can make a new investment by depositing a small amount. To increase PPF account, you have to submit the form one year before maturity. During these 5 years, you can withdraw money if needed. Also read- What is commodity trading in stock market, know how to buy and sell, how beneficial Third option – increase account, not investment PPF account does not become deactivated after maturity. Meaning the account will remain active and there will be no penalty on it. If you do not want to withdraw money or also do not want to make a new investment (PPF investment), then you can extend your PPF account for 5 years after maturity. You do not need investment for this. Also, there is no need for any paperwork. For the next five years, you will continue to get interest on your amount.