Good news for prospective PPF account holders! If you’re planning to open a Public Provident Fund (PPF) account, here’s some exciting news for you.
The government has introduced a scheme that grants you the advantage of double interest on your investment.
Investing in the PPF scheme continues to be the top choice for smart money management, offering attractive returns and substantial benefits upon maturity.
Here’s how you can benefit from double interest:
Avail a Deduction up to 1.5 Lakh
The PPF investment falls under the EEE category, making it entirely tax-free regarding investment, interest, and maturity amounts.
By investing in the PPF scheme, you can claim a deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
Double Interest Benefit for Married Couples
Married individuals have an excellent opportunity to double their investment through the PPF scheme.
By opening an account in this scheme together with your partner, both of you can enjoy the benefits of interest on your respective accounts.
Expert’s Opinion
Experts suggest two options for investing in the PPF scheme.
You can deposit Rs 1.5 lakh in your account and an additional Rs 1.5 lakh in an account opened in your partner’s name.
By doing so, you’ll receive double interest on two accounts. Furthermore, you can avail tax exemption up to Rs 1.5 lakh on any one account, effectively doubling your PPF investment limit to 3 lakhs.
Tax-Free Accounts
Both your and your partner’s PPF accounts will be tax-free when opened in each other’s names, and both accounts will earn interest.
Under Section 64 of the Income Tax Act, the income from any amount or gift given to your spouse is added to your income.
Double Benefits for Married Couples
Married couples stand to gain from the double interest benefit in the Public Provident Fund Scheme.
When the PPF account of married couples matures, the income from the initial investment in your partner’s account will be added to your income on a yearly basis.
The current interest rate set by the government is 7.1 percent for this quarter.
This scheme provides a golden opportunity for married couples to enhance their PPF investments and make the most of its tax-free status and attractive interest rates.
Don’t miss out on this incredible chance to grow your savings!
