PPF Calculator: Public Provident Fund (PPF) scheme with government investment is counted among the very safe and excellent returns schemes for investors. Because the money invested in PPF (Public Provident Fund) is not invested in the stock market, it is not affected by the daily fluctuations in the stock market. Not only this, investors also get tax exemption on investing in PPF. Under 80C of the Income Tax Act, tax exemption is available for investing in PPF of Rs 1.5 lakh annually. Also, no tax is to be paid on the interest amount received after maturity. One can invest up to Rs 1.5 lakh annually in PPF account which can be done on monthly or quarterly or yearly basis. By investing in PPF, you can build a large corpus to meet your future needs over a long period of time.
PPF interest rates set to increase
On June 30, the central government can announce to increase the interest rates on PPF. At present, 7.1 percent interest is available on PPF. But after increasing the repo rate of RBI, when all the banks are increasing the interest rates on FD, then at the end of this month the government will review the interest rates of savings schemes, then the increase in the interest rates of PPF is believed to be certain. However, in 2015-16, PPF used to get 8.7 percent interest. Investors are hurting at that level. But it is believed that the interest rate is going to increase. Investors can invest continuously for 15 years in PPF account. And if the investor does not need the money, then they can also extend their PPF account after 15 years based on the block period of five five years, thus they can invest in PPF for 35 years. For this, PPF account submission form has to be filled.
How to make Rs 5 crore
If you invest 150000 rupees (one and a half lakh rupees) every year in your PPF account. If you are 25 years old and continue to invest 1.5 lakh rupees annually in PPF account for the next 35 years till the age of 60 years of retirement, then you will get a total of Rs 2.27 crore. In which Rs 52,50,000 will be your investment, on which Rs 1,74,47,857 will be received as interest, on which no tax will have to be paid. And if you continue to invest in PPF till your 70 years of age, on your investment of Rs 67,50,000 you will get Rs 4,72,99,295. And if the government increases the interest rates on PPF, then the returns can even cross Rs 5 crore.
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