PPF Interest Double: If you use this method to invest in PPF, you will get Rs 1 crore after 15 years

 PPF Interest Double: If you use this method to invest in PPF, you will get Rs 1 crore after 15 years

PPF Interest Double: If you use this method to invest in PPF, you will get Rs 1 crore after 15 years

Investments up to Rs 1.5 lakh are free from tax under Section 80C of the Income Tax Act. PPF allows investments up to a maximum of Rs 1.5 lakh. A year, twelve deposits of money are permitted. However, married investors may find this information valuable.

Investing in Public Provident Funds (PPF) offers tax savings and high interest rates. The majority of Indians choose to invest in this strategy. This is guaranteed by the government. The fact that this investment has remained in the E-E-E category makes it unique. This means that there are no taxes associated with your investment, interest, or maturity amount. A maximum yearly investment of Rs 1.5 lakh in PPF is free from income tax. However, if you double this investment, the interest you get will likewise double. Let's comprehend...

How is an investment doubled?

Investments up to Rs 1.5 lakh are free from tax under Section 80C of the Income Tax Act. PPF allows investments up to a maximum of Rs 1.5 lakh. A year, twelve deposits of money are permitted. However, married investors may find this information valuable. You may get interest on both accounts and double your investment in a single fiscal year if you create a PPF in your partner's name.

These advantages come with PPF investments.

According to experts, an investor might invest in PPF rather than other investment possibilities by creating a PPF account in the name of his life partner. Under such circumstances, he will have two choices. First, you have the option to fund your account with up to Rs 1.5 lakh. In a fiscal year, another person may deposit up to Rs 1.5 lakh in the partner's name. These two accounts will have different interest rates available. A maximum tax exemption of Rs 1.5 lakh may be claimed concurrently on a single account. Your PPF investment limit will treble to Rs 3 lakh in such a case. The investor will also profit from tax exemption on the PPF maturity amount and interest as they are in the E-E-E category.

The clubbing provisions have no impact.

Any money or gift you give your wife will be included in your income under Section 64 of the Income Tax. Nonetheless, the clubbing requirements are meaningless in the case of PPF, which is fully exempt from taxes thanks to EEE.

A marriage-related trick

In addition, the income from your initial investment in your partner's PPF account will be added to your income year after year when their PPF account matures in the future. Married folks may thus choose to double their PPF account contribution with this option. For the April–June quarter, PPF's interest rate is set at 7.1 percent.