PPF Tips: You can earn 1 lakh rupees every month from PPF, know how much you need to invest..

Best investment option: The Government of India is making many efforts to strengthen the people of the country financially. Many types of savings schemes have also been started by the government, whose eligible people are taking advantage of them. Today we are going to tell you about such a way of investing where you get guaranteed returns as well as tax benefits. We are talking about PPF which is a safe investment option. Here we will tell you how you can get a good amount by investing in it (the best way to invest money).

What is the Public Provident Fund (PPF)?

The Government of India gives the option of a Public Provident Fund (PPF), which is a Long Term Investment Saving Plan, which gives tax exemption under Section 80C of the Income Tax Act 1961. You can easily open it in a bank or post office. The investment limit in PPF is from Rs 500 to Rs 1.50 lakh.

The lock-in period of PPF

The lock-in period of a PPF account is 15 years. After this, you can extend it according to your convenience in blocks of 5-5 years, which gives you complete control over the investment.

Can money be withdrawn before 15 years?

The first question that comes to our mind is whether the amount can be withdrawn before the period of 15 years in PPF or not. Yes, after 5 years, there is an option of partial withdrawal once in a financial year from a PPF account. Apart from this, you can continue the account even after 15 years, whether you make new investments or not.

Tax benefits on PPF

On PPF, you can get a tax-free income of up to Rs 1.50 lakh under 80C. This is because its interest and maturity amount are completely tax-free.

How to get an income of more than 1 lakh?

For this, you have to invest Rs 1.50 lakh every year, which you will continue for 15 years. Along with this, you also have to keep in mind that you invest between April 1-5, so that you get maximum benefit of interest throughout the year. After completion of 15 years, move the account forward in blocks of 5-5 years and continue investing. Continue this process for 35 years.

Let us know how much amount you get after 35 years if you follow this process.

What to do after 35 years?

Now you can withdraw the interest received on your total amount annually. In this case, at 7.1% interest rate, your monthly tax-free income will be Rs 1,34,295. Even after this, your principal amount will remain safe and you will get regular income.

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