Income Tax Deduction PPF U/s 80C |PPF
is one of the best long-term investment options with
attractive interest rates
and investment returns for people with low-risk appetites. It can also be called
a
savings and tax savings investment option to save on taxes and get a
guaranteed return. PPF is a
government-backed scheme that allows you to build
up a retirement corpus in one lump sum. Because
the return is fixed, it is also
used as a diversification tool for an investor’s portfolio, along with
tax-
saving benefits.
PPF BUSINESS REQUIREMENTS: Minimum
15 years of experience.
INTEREST: 7.1% compounded annually
DEPOSIT LIMIT: Minimum investment
of Rs.500 and maximum of Rs.1.5 lakh for each financial year
METHOD OF DEPOSIT: Can be done by
cash, cheque, DD or online wire transfer
DEPOSIT FREQUENCY: At least once a
year for 15 years.
RISK PROFILE: Minimum risk factor
applicable to risk-free returns.
TAX REDUCTION BENEFITS: Up to Rs.
1.5 Lakh under Section 80C
Download and Prepare at a time 50 Employees Form 16 Part B for the F.Y.2022-23 in Excel
PPF: ACCOUNT EXTENSION RULES CHANGED:
After the due date, Form 4 must be
submitted for renewal. The extension can be done in blocks of 5 years. The PPF
account can also be maintained after maturity without depositing more funds and
interest can be earned on the balance amount at the respective rate. Renewal
requests must be made within one year of the expiration date of your original
or renewed account.
EARLY CLOSING OF ACCOUNT: Apart
from early closure in special cases requiring funds, a PPF account can now be
closed earlier if your residential status changes from resident to
non-resident. This requires documents such as passports, visas or income tax
returns to be provided.
Download and Prepare at a time 50 Employees Form 16 Part A&B for the
F.Y.2022-23 in Excel
ACCOUNT FAILURES: Currently there
is no limit on the number of deposits. You can deposit in multiples of Rs. 50
but the minimum should be Rs. 500 and the maximum value may exceed Rs. 1 50,000 per
annum.
INTEREST ON LOANS AGAINST PPF: The
government has reduced the interest rate from 2% to 1% (above the existing
interest rate on PPF), reducing the cost of borrowing from PPF.
PAYMENT TERMS: The loan must be
repaid within 36 months. In case of default (partial or full), penal interest
of 6% per annum will be charged. A second loan can also be obtained right after
the first loan. Under the amended rules, PPF is also still available as a
tax-saving investment opportunity. It was started in order to mobilize small
savings in the form of investments along with its returns. So anyone looking
for a safe investment option to save tax and get guaranteed returns can
definitely go for PPF.
Download And Prepare at a time 100 Employees Form 16 Part B for the F.Y.2022-23 In Excel
