new Delhi: Often people churn on investment, where and how much to invest? How will the return be received? How safe is this investment and how easy will it revert to in the future? We are telling you about such an investment which will be simple and safe and will give better returns.
This investment has many advantages. If you invest in PPF (Public Private Fund), you can get better reverses after a while. This money can be used for the education of children or for the marriage of a daughter. You can use this money for household and any big expenses. The special thing about this investment is that you get relief from tax under section 80C on investment of up to Rs 1.5 lakh per annum in PPF account. Also, no tax has to be paid on interest income. Apart from this, the amount received on maturity is also outside the tax net.
Know how to open PPF account:
You can open PPF account online or offline in any bank. You can also open it in the post office. There is a minimum locking period of up to 15 years. It can also be extended for another 5-5 years. You can deposit a minimum amount of Rs 500 annually and a maximum of Rs 1.5 lakh. Money can be deposited in it at least once in a year and not more than 12 times.
If you are unable to deposit money:
If you are unable to deposit the money in the PPF account, then a small amount of penalty is 50 rupees. With this, the account starts again after depositing the money. If you did not deposit the money for two years. If the account is re-activated for two years, then the 15-year counting will start from there.
Loans can be availed on PPF account:
There is also a facility to take a loan on a PPF account. You can also make someone a nominee in this. This account can be transferred from post office to bank or bank to post office also. One advantage with this account is that you can withdraw money in the middle if you need to, but its term and condition are different. You can extend this account further for 5-5 years after 15 years.
This is how you get interest and maturity amount:
Suppose you have invested 1000 rupees a month in a PPF account. That is, you are investing 12000 rupees annually. In 15 years, you made a total investment of 1.80 lakh rupees. You will get interest of Rs 1.45 lakh on this investment. That is, after 15 years you will get three and a quarter lakh rupees.