With the current budget coming into effect, the investment limit for PPF has been increased and that is surely great news for every Indian holding a PPF account. There are numerous benefits that we all can avail by investing 1,50,000 to the PPF account and hence ensure a tax free earning.
[intlink id=”1777″ type=”post”]Check tax saving options for FY 2014-15[/intlink]The new budget, which was announced on 10th 2014 hiked the investment limit a user can deposit in his or her PPF account from INR 1,00,000 to INR 1,50,000. What else could people having PPF account ask for? It’s certainly a blessing in disguise for tax payers.
Now PPF account holders can earn more benefits by investing up to Rs. 1,50,000 for a period of 15 years.
What could be the best time to invest in PPF Account?
PPF (Public Provident Fund) is surely considered to be among preferred choices for tax savings for almost every taxpaying individual in India. One of the most significant questions that may arise in your mind is when to deposit in your PPF account to get maximum benefits.
Well, for obvious reasons, analysts recommend you to invest within 1st to 5th day of every month. This is again a better time to open a new PPF account as well.
How to maximize your benefits while investing in PPF?
If you are a PPF account holder, you can get tax benefits on your investments under 80C for whatever amount you invest. The saving is tax free and risk-free as well. That makes PPF investment a likely and must choice for many.
[intlink id=”75″ type=”post”]We have already provided PPF overview[/intlink]
Moreover, you can extend the tenure of your PPF investment beyond the standard tenure of 15 years. Here are certain things that you should pay attention to get maximum benefit from your PPF investment.
- Get a PPF account as early as possible
- Make your contributions on a monthly basis
- Consider adding investments to Lump Sum as well
- Open your PPF account during start of any financial year
- Make contributions within 1st to 5th day of every month
- Prefer banks with Online Transfer facility. This makes everything quite easier for you.
- Avail loans from PPF rather than going for personal loans. You may save a lot of money by this.
- Prefer having PPF account in your child’s name
The sooner you get an account, the better and more beneficial it can be for you. There are lots of people who are not really well informed about PPF. Opt for a bank that facilitates you with online fund transfer. There are lots of times when people miss on monthly payments just because of manual processes. Online payment facility would ensure that this does not happen with you.
PPF investment is always considered to be a better and safer option than other forms of investments, simply because of the fact that the earnings from PPF are always tax free. For people looking for a long term and secure investment, PPF remains to be a preferred choice.