PPF or Public Provident Fund is a governmental scheme that helps people to save money for their future use. It falls under the EEE or Exempt-Exempt-Exempt category. There are many people who do not know how PPF saves tax as of date. I recently got to know about it so let me share every detail about it.
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Contributing money in PPF account will be taxable if it crosses Rs 1.5 lakh. You should be knowing that in order to keep an account active, one must keep Rs 500 in his PPF account. The maximum amount of money he can keep is rs 1.5 lakh. If the amount exceeds then it will be taxable. I hope this information has already answered your query on how much should I invest in PPF to save tax, it is Rs 1.5 lakh in one financial year as per Section 80C of the Income Tax Act 1961.
The interest one receives on this amount and the maturity benefits are also tax-free.
I hope you have got an idea on how much to invest in PPF to save tax.
Also note that the withdrawals from PPF, be it partial or in whole, are also exempt from taxation under Section 80C of the Income Tax Act 1961.
This is all I can say to answer the question how PPF saves tax.
Read More:What is Section 80C of Income Tax Act?
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How Much To Invest In PPF To Save Tax?
Ananya
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2022-09-23T10:26:50+00:00 2022-09-23T10:26:52+00:00Comment
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