PPF account can make you a millionaire: Invest in PPF to get Rs 2.26 crore on retirement

Yes, this scheme can really give a completely tax-free amount of more than 2.25 crore in your hand… and if both husband and wife adopt this scheme in the family, then the total amount received on retirement will be 4.5 crore. It can be… Not only this, apart from this, through this scheme, both husband and wife together can save tax up to a maximum of Rs 93,600 (Rs 46,800 each) annually, that too for the whole 35 years… Remember 46,800 when the investor is paying full 30% tax according to the highest slab of income tax… If the investor is paying tax under the lower slab of income tax, then the amount of tax saved The amount will also reduce accordingly.

Now let’s tell about this scheme… This is the most prevalent and popular savings scheme in the last decades, which is included in the small savings schemes of the Government of India… The name of this scheme is Lok Bhavishya Nidhi, which is known in English. I am called Public Provident Fund, i.e. Public Provident Fund or PPF… Under this scheme, you can open your account in the post office, ie post office or any bank branch…

You can deposit a minimum of Rs 500 and a maximum of Rs 1,50,000 in the PPF account every year (here we are talking about the financial year, i.e. April 1 to March 31), whose interest will be credited to your account on the last day of every year. is added… So, now if you deposit the entire Rs 1.5 lakh on April 1 every year, then at the end of the year maximum interest will be deposited in your account… But it pays interest at the rate of 7.1 per cent, which is much lower than in the previous years, but still this rate is sufficient to keep PPF among the best investment options…

The biggest feature of this scheme is that it is included in the EEE scheme of the government, which means that you get tax exemption on the amount deposited every year, you do not have any tax on the interest received every year. Have to pay, and finally maturity, that is, the entire amount received at the time of maturity (principal investment and interest) is also completely out of the tax net…

Well, now understand how you can become a millionaire by this scheme till retirement… You open a PPF account at the age of 25, and every year on April 1, deposit the maximum limit of Rs 1.5 lakh in the account, then At the current rate, Rs 10,650 will be credited to your account on March 31 of the next year, which will make your account balance on the first day of the next financial year, ie, Rs 1,60,650, and the same amount will be credited for next year’s investment. The Rs 1.5 lakh deposited will become Rs 3,10,650 as soon as it is added, and next year you will get interest on Rs 3,10,650 instead of Rs 1.5 lakh, which will be Rs 22,056… Similarly, every year on April 1, you deposit Rs 1.5 lakh Stay, and on completion of 15 years of maturity, Rs 40,68,209 will be deposited in your account, in which your investment will be Rs 22,50,000 and interest amount will be Rs 18,18,209…

Now at this time your age is only 40 years, and you are still far away from retirement… The real beginning of making you a millionaire will be from here… Now know that by applying before the maturity of the PPF account, five years Can be extended for 5 years, and you can get this extension any number of times… So, you have to extend your PPF account for five years, and maintain your annual investment routine… When this The next time (20 years of PPF account and 45 years of your age) will reach maturity, then the total amount in this will be Rs 66,58,288, in which your investment will be Rs 30,00,000 and the interest received will be Rs 36,58,288…

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After this, you extend your PPF account again, and keep investing… Now at the age of 50, you will have a total deposit of Rs 1,03,08,014 in the account, in which your investment is Rs 37,50,000 and interest The amount will be Rs 65,58,015… Now extend the PPF account again, and after five years when you will be 55 years old, then the total amount in your account will be Rs 1,54,50,910, in which the amount invested is 45,00,000 And the amount of interest will be Rs 1,09,50,911… And after five years of extending this time, i.e. when you will be 60 years old, then the total amount deposited in your PPF account will be Rs 2,26,97,857, in which your The total investment will be Rs 52,50,000, while the interest amount will be Rs 1,74,47,857…

Now the most important thing about this amount will be that you will not have to pay any kind of tax on it, and it will be completely white money… Interesting fact is also that the investment you made every year for this amount , on that too you have saved about Rs 16,38,000 in 35 years at Rs 46,800 every year…

Millionaire by opening PPF account… by NDTV

After reading everything about this scheme in detail, the special things which are worth remembering are these…

  1. The government revises the interest rate on PPF account every quarter, so, in case of increase or decrease in the interest rate, your total amount received on retirement may also increase or decrease…
  2. In PPF account, the investor should deposit the amount of investment every year in the beginning of April itself, so that maximum interest can be obtained.
  3. Remember, the maturity amount mentioned in this post is achieved after running the PPF account for 35 years, so, if you are above 25 years of age at the time of opening the account, and you do not extend it at least four times , even then there may be a difference in the amount you get…

Disclaimer: The content on this page is non-editorial, and NDTV disclaims any assurances (explicit or implied) made herein, and any promises made therein, and does not endorse the content in any way. Readers/Users should exercise due care and understanding, and comply with all applicable laws, including those relating to taxation. The above material is in no way investment advice, nor is it being promoted or suggested as an alternative to job / employment / income opportunities, to overcome financial difficulties, or to achieve financial security.

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, What is PF – Know the answers to all the questions related to Provident Fund…
, What is gratuity, how it is calculated – know everything
, Paying rent to parents for HRA Rebate should be careful…

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