Public Provident Fund (PPF) is a government-backed financial savings scheme that provides tax-free earnings on investments as much as Rs 1,50,000 per monetary yr. With PPF, you possibly can get pleasure from tax advantages beneath 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 provides assured returns and tax advantages beneath Part 80C of the Revenue Tax Act, 1961. You possibly can 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 prolong 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 beneath 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 possibly can 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 top of the previous yr, whichever is decrease.
What occurs to PPF account after 15 years?
After 15 years of the maturity interval, you possibly can proceed your account with or with out deposits.
get Rs 1,20,000 a month from PPF?
To generate Rs 1,20,000 a month from PPF you must 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 ought to be made between April 1-5 each monetary yr.
What will likely be PPF corpus after 15 years?
The funding quantity in 15 years will likely be Rs 22,50,000, the estimated curiosity will likely be Rs 18,18,209, and the estimated maturity will likely be Rs 40,68,209. The investor can take an extension of 5 years and hold investing Rs 1.50 lakh a yr in the identical method as earlier than.
What will likely be PPF corpus after 20 years?
In 20 years, the overall funding will likely be Rs 30,00,000, the estimated curiosity will likely be Rs 36,58,288, and the estimated corpus will likely be Rs 66,58,288. At this stage, the investor can take one other extension of 5 years and proceed the apply of investing Rs 1.50 lakh a yr.
What will likely be PPF corpus after 25 years?
In 25 years, the overall funding will likely be Rs 37,50,000, the estimated curiosity will likely be Rs 65,58,015, and the estimated corpus will likely be Rs 1,03,08,015.
What will likely be PPF corpus after 30 years?
In 30 years, the overall funding will likely be Rs 45,00,000, the estimated curiosity will likely be Rs 1,09,50,911, and the estimated corpus will likely be Rs 1,54,50,911.
What will likely be PPF corpus after 34 years?
In 34 years, the overall funding will likely be Rs 51,00,000, the estimated curiosity will likely be Rs 1,59,43,144, and the estimated corpus will likely 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 complete corpus. Throughout extensions, the account holder is allowed to withdraw the curiosity quantity annually.
What will likely be your curiosity quantity?
At a 7.1 per cent rate of interest, the estimated curiosity in a yr will likely 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 knowledgeable for monetary planning)