The government is running a number of programs for Tax saving. In these, various possibilities are accessible. PPF, or a Public Provident Fund, is another of these choices. A PPF investment qualifies for a tax advantage of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
Today, on March 31, the fiscal year 2022–23 comes to a conclusion.
The deadline to invest in such a circumstance if you wish to avoid paying income tax for the fiscal year 2022–2023 is today. By making an investment in certain tax-saving plans, taxes can be saved in this circumstance. Here, we’ll discuss one such tax-saving strategy that will enable you for annual tax saving.
Tax Saving plan, Public Provident Fund
The most well-known savings plan is the Public Provident Fund (PPF). The lowest deposit into a PPF account during a fiscal year is Rs 500, and the maximum is Rs 1.5 lakh, meaning that up to Rs 1.5, lakh can be invested in this program over a fiscal year. This program is governed by the Central Government.
Interest on PPF
On the money put in the PPF account, interest is earned. In addition, the PPF currently offers an annual compound interest rate of 7.1 per cent. PPF has a 15-year maturity period and is a long-term investment. PPF accounts offer three times as many tax benefits under section 80C of the Income Tax Act. The sum paid at maturity is also not taxable, and the interest produced under this program is tax-free.
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