PPF Scheme: In today’s time, to make your future financially secure, you can invest in government schemes or you can also take advantage of investing in the stock market. But people also want to invest and do not want to take any risk, they want their money safe. This is the desire of every common man, so we have brought such a government scheme for you today. In this scheme, you can start investing with just Rs 500 and become a millionaire.
The PPF scheme run by the post office can prove to be a good option for you in such a situation because your money will be completely safe in it. At present, you are being given 7.1% interest on investing in PPF. You can start this scheme by investing Rs 500.
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The minimum amount of investment
If you want to start investing in this PPF scheme, then you have to deposit at least Rs 500. You can deposit a minimum of Rs 500 in a financial year while its maximum limit is Rs 1.5 lakh. In this PPF scheme, the maturity time is 15 years and you can withdraw the entire money after 15 years of investment. But if you do not need money, you can extend it for 5-5 years. You have to apply 1 year in advance to increase the maturity.
Can’t make money for 5 years
If you have started investing in this scheme once and you have to withdraw money in an emergency, then you cannot withdraw a single rupee before 5 years. This is because this scheme has a lock-in period of 5 years. After the completion of this period, you can withdraw money by filling Form 2, but if you withdraw money before 15 years, you will have to pay 1 percent interest.
There is also tax exemption.
The PPF scheme comes under the EEE. This means that you get full tax exemption on the investment made in this scheme. Also, the interest earned at the time of maturity will be tax-free. Investments of up to Rs 1.5 lakh under the PPF scheme are eligible for tax benefit under Section 80C of the Income Tax Act.
