Public Provident Fund (PPF) is a government-backed financial savings scheme that gives tax-free earnings on investments as much as Rs 1,50,000 per monetary yr. With PPF, you’ll be able to get pleasure from tax advantages below Part 80C of the Revenue Tax Act, of 1961. Thus, let’s discover out how are you going to generate Rs 1,20,000/month tax-free earnings from PPF.
PPF
Public Provident Fund is a government-backed scheme that gives assured returns and tax advantages below Part 80C of the Revenue Tax Act, 1961. You may open a PPF account in a financial institution or submit workplace.
Funding tenure in PPF?
A PPF account has a lock-in interval of 15 years on funding. After 15 years, the account holders can lengthen their account for limitless blocks of 5 years every.
Minimal and most funding quantity in PPF?
The minimal deposit in a monetary yr is 500, whereas the utmost is Rs 1.5 lakh.
Tax advantages
Contributions as much as Rs 1.5 lakh in PPF are eligible for tax deductions below Part 80C, the curiosity earned and the corpus are additionally tax-free.
Are you able to withdraw earlier than maturity interval of 15 years in PPF?
A PPF account holder is allowed to take 1 withdrawal throughout a monetary yr after 5 years.
How a lot are you able to withdraw at finish of previous yr?
You may withdraw as much as 50 per cent of the overall stability in a single transaction on the finish of the 4th previous yr or the tip of the previous yr, whichever is decrease.
What occurs to PPF account after 15 years?
After 15 years of the maturity interval, you’ll be able to proceed your account with or with out deposits.
How you can get Rs 1,20,000 a month from PPF?
To generate Rs 1,20,000 a month from PPF you need to start with Rs 1.50 lakh funding each monetary yr and proceed it until the maturity interval of 15 years. To get the utmost good thing about curiosity, the funding must be made between April 1-5 each monetary yr.
What can be PPF corpus after 15 years?
The funding quantity in 15 years can be Rs 22,50,000, the estimated curiosity can be Rs 18,18,209, and the estimated maturity can be Rs 40,68,209. The investor can take an extension of 5 years and maintain investing Rs 1.50 lakh a yr in the identical method as earlier than.
What can be PPF corpus after 20 years?
In 20 years, the overall funding can be Rs 30,00,000, the estimated curiosity can be Rs 36,58,288, and the estimated corpus can be Rs 66,58,288. At this stage, the investor can take one other extension of 5 years and proceed the follow of investing Rs 1.50 lakh a yr.
What can be PPF corpus after 25 years?
In 25 years, the overall funding can be Rs 37,50,000, the estimated curiosity can be Rs 65,58,015, and the estimated corpus can be Rs 1,03,08,015.
What can be PPF corpus after 30 years?
In 30 years, the overall funding can be Rs 45,00,000, the estimated curiosity can be Rs 1,09,50,911, and the estimated corpus can be Rs 1,54,50,911.
What can be PPF corpus after 34 years?
In 34 years, the overall funding can be Rs 51,00,000, the estimated curiosity can be Rs 1,59,43,144, and the estimated corpus can be Rs 2,10,43,144.
What’s subsequent step after 34 years of funding?
From right here onwards, you can begin withdrawing curiosity on the whole corpus. Throughout extensions, the account holder is allowed to withdraw the curiosity quantity every year.
What can be your curiosity quantity?
At a 7.1 per cent rate of interest, the estimated curiosity in a yr can be Rs 17,53,595, which is the same as an estimated Rs 1,24,505 a month.
(Disclaimer: Our calculations are projections and never funding recommendation. Do your due diligence or seek the advice of an professional for monetary planning)
