PPF: Saving plan to make millionaires will also help in tax saving, so much amount needs to be deposited every year

New Delhi. The Public Provident Fund (PPF) can prove to be a boon to working people. By depositing as little as 1.5 lakh rupees per year, even an ordinary person can become a long-term millionaire. The PPF program not only helps to increase money, but also to save money. PPF also contributes to tax savings. This is a government savings program that can save around Rs 46,000 a year for people paying taxes under the old tax system.

If both husband and wife are employed and contribute to the PPF, the maximum tax savings can be Rs 930,000 each. In this way, a tax saving of 32,76,000 rupees can be achieved in 35 years. Significantly, this is the maximum limit of PPF tax savings. If a person contributes less to the PPF, their tax savings will also decrease.

Also read this – More returns than FD these 5 small cap funds made money in a year after listening to the earnings you will also say – enjoy

How will the money grow?
We talked about saving money, now let’s talk about more money. If you start contributing to the PPF from the age of 25, by the time you are 60 you will have wealth in excess of Rs 2 crore. You can open a PPF account at any bank or post office. The maximum investment limit here is 1.50 rupees. The interest rate is currently 7.1 percent. It’s always changing. However, this interest rate is still much higher than many general savings plans. At the end of each year, the amount deposited into your PPF account will accrue interest at the rate of 7.1 percent. A similar compounding can make you a millionaire in the long run. Significantly, these are currently only Sukanya Samriddhi Yojana and Sukanya Samriddhi Yojana, the two government savings plans that have rates higher than the PPF.

how to become a millionaire
Suppose you deposited 1.50 lakh rupees on April 1st of this year. In March next year you will receive an interest rate of 7.1 percent. The amount in your account will earn you Rs 10,650 in interest for the first year. Likewise, on April 1st next year, you will again invest 1.50 lakh rupees in it. Now your total deposit amount is Rs 3,10,650. This time the interest you will get is 22,056 which means you will get twice as much interest as last time. Likewise, this amount will continue to rise. If you deposit the last 1.50 lakhs in your 60th year, your deposit amount and interest together add up to a total of more than 2.26 crores rupees. The most important thing is that no tax is levied on this amount.

Be the first to read breaking news in Hindi News18 Hindi| Read Today’s Latest News, Live News Updates and Most Reliable Hindi News Website News18 Hindi.

Tags: business news, Business News in Hindi, invest money, investment and return, investment plan, investment tips, ppf, PPF account, save money