Post Office Scheme: With this scheme of Post Office, money will be doubled, you will get Rs 4.4 lakh on investment of Rs 10 thousand...
You might have laughed out loud about the money-doubling scheme in films, but this is the reality. Investing Rs 10,000 annually in Post Office Saving Scheme can make you a millionaire. The name of this scheme is the Post Office Public Provident Fund (Post Office PPF Scheme). So if you are 20 years old and you dream of earning lakhs by the age of 40. So this dream can come true. Because in this scheme of this post office, safe and guaranteed returns are available. If you understand in simple language, your money will double with almost zero risk. Let us understand how.
Investment every year: Rs 10 lakh
Duration: 20 years
Interest rate: 7.1%
Total amount invested: Rs 2 lakh
Total interest-earning: Rs 2,43,886
Maturity amount: Rs 4,43,886
Post Office PPF Scheme
Investment in the PPF scheme can be started through the post office or any bank. You can deposit at least Rs 500 in the scheme in a financial year. Whereas a maximum of Rs 1.5 lakh can be deposited. Investors can start investing with an investment of Rs 50. A tax deduction is also available under section 80C on the investment amount. Let us tell you that under the IT Act, the interest amount is tax-free.
Benefit of EEE tax exemption on PPF
PPF comes under the EEE category of tax. Meaning, you will get the benefit of tax exemption on the entire amount invested in the scheme. Apart from this, the interest received on that investment and the entire amount received on maturity is also tax-free. Therefore, PPF investment is considered good in terms of long-term benefits.
5-year lock-in period
The lock-in period in the PPF account for pre-withdrawal has been kept at 5 years. This means that money cannot be withdrawn from this account for 5 years after the year in which the account was opened. After completion of this period, pre-withdrawal can be done by filling out Form 2. However, maturity withdrawal cannot be done before 15 years.