highlights
By investing in PPF, you benefit from tax savings and excellent interest rates.
You can earn double interest by opening a PPF account in your affiliate’s name.
It is also not affected by clubbing regulations as it is totally tax free under EEE.
New Delhi. Public Provident Fund ie PPF is a great option for investment. In addition to excellent interest rates, you also benefit from tax savings. Most Indians are happy to invest in this system. The special thing is that you also get a state guarantee. In addition, this investment was classified in the EEE category. This means that your investment, your interest and your maturity amount are all three completely tax-free.
Let us tell you that under Section 80C of Income Tax, a tax exemption of up to Rs 1.5 lakh is possible for investing in PPF. However, you can double this investment by increasing it. If you can double the investment in one fiscal year by opening a PPF account in your affiliate’s name. In this way, you benefit from interest on both accounts.
Also Read This – Stock Market Returns And Tax Exemption Like PPF What Is This Double Motor Investment
There are many benefits of investing in PPF
According to experts, you can open a PPF account in the name of your life partner and use it as another investment opportunity. In such a situation, you have two options to invest in PPF. You can deposit Rs 1.5 lakh into your account and Rs 1.5 lakh into the account opened in your partner’s name. This way, you get different interest rates on both accounts. At the same time, you can also avail tax exemption up to Rs 1.5 lakh for each individual account. In this case, the limit of your PPF investment will be doubled to Rs 3 lakh. Being in the EEE category, the investor also benefits from the tax exemption on the PPF interest and the amount due.
Deposits into both accounts are tax-free
If you deposit the amount into the PPF account opened in your partner’s name, both accounts remain tax-free. However, under Section 64 of Income Tax, income from sums or gifts given to your spouse will be included in your income. But in the case of PPF, these clubbing regulations have no effect. Because it is totally tax free because of EEE.
what is the interest rate now?
Let us tell you that in this way, married couples can benefit from a dual interest in PPF. Later, when your partner’s PPF account matures, the income from your initial investment in your partner’s account will be added to your income year after year. The PPF interest rate was set at 7.1 percent for the April-June quarter.
Be the first to read breaking news in Hindi News18 Hindi| Read Today’s Latest News, Live News Updates, Most Reliable Hindi News Website News18 Hindi.
Tags: business news, Business news in hindi, Pair, income tax, ppf, PPF account, Save to PF, Tax Saving Opportunities, tax savings
FIRST RELEASED : April 14, 2023 at 15:03 CET
