Founded in 1968, PPF is a well-liked choice among the government's small savings plans. Section 80C of the Income Tax Act of 1961 provides investors with tax incentives together with assured returns in this long-term savings plan. In addition to offering secure returns, this plan offers long-term investing advantages such as assisting in the establishment of a pension fund.
Anyone with a minimum deposit of Rs 500 can open a PPF account at a bank or post office. You can even open a PPF account in your wife's name if you'd like. Let's see how every investor can receive Rs 1,06,828 in tax-free income each month from PPF.
What is PPF?
PPF is a retirement-oriented plan with guaranteed income. Additionally, it provides tax advantages under Section 80C of the 1961 Income Tax Act. Anyone can invest in it, whether they are a business owner or an individual. The maximum amount that can be invested in a fiscal year is Rs 1.5 lakh, with a minimum of Rs 500. It encourages long-term savings and is a secure and lucrative choice.
What is the maturity period?
The Public Provident Fund (PPF) has a 15-year initial lock-in period. Following this time frame, account holders are able to extend their accounts indefinitely in 5-year increments. After five years, account holders can also take out one withdrawal in a fiscal year, which gives them greater investing freedom.
You can take out half of the remaining credit at the end of the fourth year or the end of the prior year, whichever is less, if you need the money. That is, until march 31, 2023, or march 31, 2024, up to 50% of the remaining amount, whichever is less, may be withdrawn in 2023–2024.
How to get Rs 1.06 lakh every month?
To get Rs 1,06,828 every month from PPF, one has to start investing Rs 1.50 lakh in every financial year and continue it till the maturity period of 15 years. To get maximum benefit of interest, investment should be done between 1 april to 5 april in every financial year. This investment should be of one and a half lakh rupees in a lump sum.
Maturity after 15 years-
In 15 years, you will have invested a total of Rs 22.50 lakh if you invest Rs 1.5 lakh annually. You would receive interest on the money totaling around Rs 18.18 lakh over this period. This indicates that Rs 40,68,209 will be the maturity amount. Investors can extend this for a further five years and keep making the same annual investment of Rs 1.50 lakh.
Maturity after 20 and 25 years-
The investment will grow to Rs 30,00,000 in 20 years, and interest of Rs 36,58,288 will be earned on it. The maturity amount will therefore be approximately Rs 66,58,288. Here, the investor might continue to invest Rs 1.5 lakh a year for an additional five years. Likewise, the interest on the Rs 37.50 lakh investment is Rs 65,58,015 after 25 years. The entire amount due at maturity is Rs 1,03,08,015.
Maturity after 29 years
You would deposit a total of Rs 43.50 lakh in PPF if you continue to contribute Rs 1.5 lakh annually for 29 years. You will receive interest of almost Rs 99.26 lakh during this period. In other words, Rs 1 crore 42 lakh 76 thousand 621 will be your maturity amount. In a similar vein, the total investment will rise to Rs 48,000,000 in 32 years, with interest of around Rs 1,32,55,534. On maturity, you would receive Rs 1 crore 80 lakh 55 thousand 534 after 32 years. You can halt your investment here.
You can now take out the monthly interest you've earned on this money. You can only withdraw interest once a year if you have been a part of this scheme for more than 15 years. You will receive around Rs 15 lakh 4 thousand in interest per year if you deposit Rs 1 crore 80 lakh, which you will receive upon maturity, in the bank and the bank offers you 7.1% interest. You will receive almost Rs 1 lakh 6 thousand each month if you divide this interest over a 12-month period.
Anyone with a minimum deposit of Rs 500 can open a PPF account at a bank or post office. You can even open a PPF account in your wife's name if you'd like. Let's see how every investor can receive Rs 1,06,828 in tax-free income each month from PPF.
What is PPF?
PPF is a retirement-oriented plan with guaranteed income. Additionally, it provides tax advantages under Section 80C of the 1961 Income Tax Act. Anyone can invest in it, whether they are a business owner or an individual. The maximum amount that can be invested in a fiscal year is Rs 1.5 lakh, with a minimum of Rs 500. It encourages long-term savings and is a secure and lucrative choice.
What is the maturity period?
The Public Provident Fund (PPF) has a 15-year initial lock-in period. Following this time frame, account holders are able to extend their accounts indefinitely in 5-year increments. After five years, account holders can also take out one withdrawal in a fiscal year, which gives them greater investing freedom.
You can take out half of the remaining credit at the end of the fourth year or the end of the prior year, whichever is less, if you need the money. That is, until march 31, 2023, or march 31, 2024, up to 50% of the remaining amount, whichever is less, may be withdrawn in 2023–2024.
How to get Rs 1.06 lakh every month?
To get Rs 1,06,828 every month from PPF, one has to start investing Rs 1.50 lakh in every financial year and continue it till the maturity period of 15 years. To get maximum benefit of interest, investment should be done between 1 april to 5 april in every financial year. This investment should be of one and a half lakh rupees in a lump sum.
Maturity after 15 years-
In 15 years, you will have invested a total of Rs 22.50 lakh if you invest Rs 1.5 lakh annually. You would receive interest on the money totaling around Rs 18.18 lakh over this period. This indicates that Rs 40,68,209 will be the maturity amount. Investors can extend this for a further five years and keep making the same annual investment of Rs 1.50 lakh.
Maturity after 20 and 25 years-
The investment will grow to Rs 30,00,000 in 20 years, and interest of Rs 36,58,288 will be earned on it. The maturity amount will therefore be approximately Rs 66,58,288. Here, the investor might continue to invest Rs 1.5 lakh a year for an additional five years. Likewise, the interest on the Rs 37.50 lakh investment is Rs 65,58,015 after 25 years. The entire amount due at maturity is Rs 1,03,08,015.
Maturity after 29 years
You would deposit a total of Rs 43.50 lakh in PPF if you continue to contribute Rs 1.5 lakh annually for 29 years. You will receive interest of almost Rs 99.26 lakh during this period. In other words, Rs 1 crore 42 lakh 76 thousand 621 will be your maturity amount. In a similar vein, the total investment will rise to Rs 48,000,000 in 32 years, with interest of around Rs 1,32,55,534. On maturity, you would receive Rs 1 crore 80 lakh 55 thousand 534 after 32 years. You can halt your investment here.
You can now take out the monthly interest you've earned on this money. You can only withdraw interest once a year if you have been a part of this scheme for more than 15 years. You will receive around Rs 15 lakh 4 thousand in interest per year if you deposit Rs 1 crore 80 lakh, which you will receive upon maturity, in the bank and the bank offers you 7.1% interest. You will receive almost Rs 1 lakh 6 thousand each month if you divide this interest over a 12-month period.
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