Tax benefits of the Public Provident Fund (PPF) U/s 80C with Automatic Income Tax Calculator All in One for the Non-Govt Employees for the F.Y.2023-24 and A.Y.2024-25 in Excel
A tax benefit of the Public Provident Fund is popular for a Maximum number of individuals who want
to earn high but stable returns. Saving the principal amount properly is the main objective of
individuals who open a PPF account.
Importance of PPF Account
Therefore, A mutual fund scheme is ideal for low-risk individuals. This plan provides a guaranteed income to meet the financial needs of people in India as mandated by the government. Moreover, the money deposited in the PPF account is also not linked to the market.
In other words,
Investors can also opt for a government pension plan to diversify their financial and investment portfolios. During downturns in the business cycle, PPF accounts can provide steady annual returns on investments.
Features of PPF Account
Income Tax Relief U/s 80C Maximum Rs.1.5 Lakh
The risk profile offers guaranteed, risk-free returns
The minimum investment amount is Rs.50,000
The maximum investment amount is 1.5 lakh per year.
Tenure 15 years
The salient features of the Public Endowment Fund Scheme can be outlined as follows:
Owning an investment
The PPF account has a lock-in period of 15 years, before which the money cannot be fully withdrawn. The investor can, if necessary, extend this mandate for 5 years after the expiry of the lock-in period.
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However, A minimum of Rupees Five Hundred and a maximum of Rupees One Lakh and Fifty Thousand can be deposited in a provident fund scheme every year. This investment can be in cash or in installments. However, an individual is entitled to only 12 annual contributions in his PPF account. Every Year must be active by the deposit to your account and activating the account
For instance, Resident Indian citizens are eligible to open a PPF account in their name. Minors can also have mutual fund accounts in their names if they are managed by their parents.
How to open a PPF account?
Above all, Offline and online procedures are available if the individual meets the required parameters specified in the eligibility criteria. Online activation of PPF can be done by visiting the bank portal or post office of your choice.
The following documents are required to be submitted while activating the Public Fund Account –
KYC documents, documents proving the identity of an individual such as Aadhaar, voter registration, driving license, etc.
Proof of residential address
Candidate declaration form
Passport size photograph
In other words,
PPF is tax benefits
Similarly, The income tax exemption applies to the principal amount deposited in the PPF account. The full value of the investment can be claimed tax-free under Section 80C of the Income Tax Act, 1961.
However, it should be kept in mind that the general principle that can be invested in a financial year is Rs. 1.5 Lakh.
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If a person wants to withdraw money from his PPF account, there are a few points he needs to follow.
In other words, A mandatory 15-year lock-in is included in the principal amount invested in these plans. Partial withdrawals are possible in case of emergencies related to a specific use. However, this amount can be withdrawn only after 5 years of account activation. Up to 50% of the total balance can be withdrawn in one transaction every financial year after the 4th year.
Investors should note that money deposited in a PPF account cannot be withdrawn before maturity. Individuals looking for long-term investment options that provide stable income can easily opt for this government support.
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Procedure for receiving PPF
If you want to withdraw some or all of your money from your PPF account, you can do so.
Step 1: Fill out the application form (Form C) with the required information.
Step 2: An Application Submit to the related Bank Branch or Post Office
What is the C Form?
This is the comment section where you have to submit your PPF account number as well as the amount you want to withdraw. Along with this, you have to indicate how many years have passed since the account was opened.
It is about office usage and includes the following information:
Date of opening of PPF account.
The total balance in the PPF account.
Previously requested date
The total amount in the account.
Amount of money allowed to be withdrawn.
Signature and date of a responsible person – usually service manager.
Requests information about the bank to which the money will be directly credited or the bank to which the check or draft is deposited.
A copy of the PPF passport should also be enclosed with this application.
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