“Is PPF taxable” is one question that comes to a lot of people’s minds when they deposit money to their PPF account. I want to tell you that PPF (Public Provident Fund) enjoys a triple exemption when it comes to income tax.
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This means you get tax exemption at the time of investment, withdrawal, and accrual. It provides up to Rs 1,50,000 deduction on the investment made in each financial year under Income Tax Act, 1961 (section 80C). Moreover, the interest that you’ll earn each year is also exempt from tax. And the accumulated corpus that you withdraw upon maturity is also tax-exempt.
Now you know the answer to your query on “Is PPF withdrawal taxable”
Why You Should Invest in PPF: Offers a High-interest Rate in the fixed income categoryAlthough the EPF (Employees’ Provident Fund) presently provides the highest interest rate, the PPF (Public Provident Fund) interest rate does not fall too far behind. EPF offers around 8.1%. However, only salaried individuals can take the advantage of this investment option. On the other hand, even self-employed individuals can invest in PPF. The current PPF interest rate is 7.1%, which is higher than that provided on other small savings schemes, such as Post Office 5-year Time Deposit, the National Savings Certificate, etc.
If you want to know “Is PPF interest taxable in new budget?” The answer is no.
Ideal in a low-interest rate regimeOne of the reasons why PPF scores over products, such as the 5-year tax-saving bank fixed deposits is due to its linkage to a floating rate. Unlike FDs, where the interest rate is fixed for the whole investment period, the PPF interest rate is floating that can change every quarter. This means if the overall interest rate in the economy increases, the interest rate on PPF will also increase in tandem and you’ll fetch higher returns.
This is all on “is PPF amount taxable”
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Read more:
How to transfer PPF account from one bank to another?
How to open PPF account?
What is PPF account?
How to check PPF balance?
what is PPF interest rate?
I hope I cleared all your doubts regarding “is PPF taxable”
Is PPF taxable?
Tannu
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2022-04-11T13:39:07+00:00 2022-04-12T17:40:11+00:00Comment
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