SBI PPF Account: Huge savings and tax exemptions
Pune: The Public Provident Fund (PPF) scheme is the most popular and beneficial savings scheme in the country. PPF provides better interest on fixed deposits (FD) in this scheme. The scheme falls under the category of EEE (Exempted, Exempted, Exempted). Therefore, you get an exemption under Section 80 (C) of the Income Tax Act on investment in this scheme. It also benefits by giving tax exemption on the interest and accumulated amount received from it.
There are challenges of competitions organised to open a PF account in the country’s largest bank SBI. To open an account one has to be eligible for it.
It includes criteria such as-
Any person can open an account under this scheme in his own name.
The account can be opened in any bank branch in the name of a minor.
Information about the scheme-
An individual can invest a minimum of Rs 500 and a maximum of Rs 1,50,000 lakh annually under this scheme.
In this scheme you can invest in lump sum or installment.
The scheme matures in 15 years but the subscriber can extend the maturity of the scheme once or more.
The maturity period increases to five years at a time.
You get an exemption under the Income Tax Act for investing in this scheme.
You can nominate one or more people for this scheme. Subscriber can also decide the shares of his nominee.
The central government decides every quarter how much interest will be received under this scheme. At present, the rate of interest is 7.1% on investing in this scheme.
No person should deposit more than Rs 1,50,000 every year. The reason for this is that you will not get interest on the amount above Rs 1,50,000 lakh nor will you get exemption under the Income Tax Act.
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