Monday, May 23, 2022

This PPF investment method for married people will work wonders because there will be a twofold gain on both the investment and the interest

PPF Tax Savings: The Public Provident Fund, or PPF, is a long-standing and dependable kind of investment that not only provides good returns but also assists in tax reduction. This is an EEE investment, which means there is no tax on the investment, interest, or maturity amount.

PPF Tax Saving in New Delhi: The Public Provident Fund, or PPF, is a traditional and dependable manner of investing that not only provides decent returns but also assists in tax savings. This is an EEE investment, which means there is no tax on the investment, interest, or maturity amount. Tax benefits are offered on PPF investments of up to Rs 1.5 lakh each year.

The maximum amount that can be invested in a PPF will be doubled.

PPF investors not only get guaranteed returns, but they also earn income tax exemption up to Rs 1.5 lakh under Section 80C of the Income Tax Act. However, many times, even after the PPF investment limit has been reached, the investor is left with money and is looking for other investment possibilities. If the investor is married, he can open a PPF account in the name of his wife or spouse and invest Rs 1.5 lakh in it separately, according to tax experts.

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These advantages are accessible when you invest in a PPF.

According to experts, opening a PPF account in the name of a life partner will quadruple the investor’s PPF investment limit, however the income tax exemption limit will remain at Rs 1.5 lakh. Even if you receive a 1.5 lakh income tax exemption, there are numerous other advantages. The PPF investment ceiling has been increased to Rs3 lakh. Because the investor falls into the EEE category, he or she is exempt from paying taxes on the interest and maturity amount of the PPF.

Provisions against clubbing are not in place.

Section 64 of the Income Tax Code adds income from any payment or gift provided by you to your wife to your income. The provisions of clubbing, on the other hand, have no effect in the case of PPF, which is totally tax-free due to EEE.

A ruse for married couples

Simultaneously, when your partner’s PPF account matures in the future, the income from your original investment in your partner’s PPF account will be added to your annual income. As a result, this option allows married persons to contribute twice as much to their PPF account.

This is thought to be a preferable option for those who want to take less risk and avoid market-linked investments such as NPS and Mutual Funds, which carry a high risk of loss. Let us inform you that the PPF interest rate for the July-September quarter has been set at 7.1 percent.

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