[ad_1]
Central Government PPF Scheme : If you want to invest for your child, then this news can prove to be of use to you. We are going to tell you about the Government Savings Scheme – Public Provident Fund (PPF) – a popular small savings scheme. Your money invested in this is completely safe. Also you get guaranteed income.
In this way a fund of Rs.
Investing in PPF from a long-term perspective can create a corpus of Rs. Whenever we talk about investments from a long-term perspective, children’s higher education, marriage or other big expenses come to mind. PPF is such an account, which you can open in the name of your child also.
Children can run the account when they become an adult
Let us tell you that after the child turns 18, he can operate the PPF account himself. With this scheme, the child gets a good fund when he becomes an adult. Which you can spend for his higher education, or for studying abroad. You can easily start this scheme by visiting any nearest post office.
what is the scheme
According to the post office, the maturity of PPF PPF account is 15 years. Account holders can apply for extension of the account in a block of 5 years by giving advance information in the post office. In this, he gets the option to continue the contribution or not.
In this account, you can invest a minimum of Rs 500 and a maximum of Rs 1.50 lakh annually. If apart from the child, either of the parents has a PPF account, then the maximum investment amount will be Rs 1.5 lakh per annum, including both. The government is currently offering 7.1 percent annual interest on PPF. Compounding is done on an annual basis.
will get tax exemption
You get tax benefits in PPF under section 80C of the Income Tax Act. In this, deduction can be taken for investment up to Rs 1.5 lakh in the scheme. The interest earned and maturity amount in PPF remains tax free. In this way, investment in PPF comes under EEE category. Loan facility is also available against PPF account. From the end of the PPF account to the completion of 1 year and before the completion of 5 years, one can apply for the loan.
Understand how a fund of 1 crore will be made in this way, PPF Calculator –
Maximum Annual Deposit: Rs 1,50,000 (Rs 12,500 per month)
Interest Rate: 7.1% p.a.
Maturity amount after 15 years: Rs 40,68,209
Total Investment: Rs 22,50,000
Income from interest: Rs 18,18,209
Scheme Extended for 5 Years
Maximum annual deposit: Rs 1,50,000
Interest Rates: 7.1% p.a.
Maturity amount after 20 years: Rs 66,58,288
Total Investment: Rs 30 lakh
Income from interest: Rs 36.58 lakh
Extend the scheme for 5 more years (extended 10 years after maturity)
Maximum annual deposit: Rs 1,50,000
Interest Rates: 7.1% p.a.
Maturity amount after 25 years: Rs 1,03,08,015
Total investment: Rs 37.50 lakh
Income from interest: Rs 65.58 lakh
Disclaimer: The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. From ABPLive.com it is never advised to invest any money here.
read this also –
SBI Stock Market: Shares of this bank can change your luck, expect 23 percent jump
Dussehra Stocks: Dussehra has been on the top in the world of smallcaps since 2021, see these stocks
[ad_2]
Source link