Latest PPF (Public Provident Fund) interest rate for July- September 2024 quarter The government has recently revealed the interest rates for small savings schemes for the period of July to September 2024. PPF investments are considered risk-free as it is government backed
The Public Provident Fund (PPF) is one of the most popular savings vehicles. Individuals can only keep one PPF account, except an account created on behalf of a minor. Investment in PPF is risk-free since the government backs it, the interest rates are favourable, and many tax breaks allow you to save on income taxes.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
PPF, Senior Citizen Savings Scheme, Sukanya Samriddhi, NSC, other small savings schemes' rates announced for July-September 2024 quarter
What is the interest rate of PPF?
The Indian government determines the interest rate on PPF, which is subject to change quarterly. The government announced the interest rates for small savings plans for the quarter July- Sept 2024 and it has decided to keep the rates of all schemes unchanged. As of the latest update, the PPF interest rate is 7.1% per year, compounded yearly for the July- September quarterPPF tenure
The PPF account tenure is 15 years and the lock-in period for the account is 15 years. PPF deposits range from Rs 500 up to Rs 1.5 lakh per financial year.Who can not open an account under PPF
PPF accounts cannot be opened in the names of HUF, Trusts, or NRI.If a resident becomes a non-resident Indian within the Public Provident Fund Scheme's maturity period, they can continue to subscribe until maturity on a non-repatriation basis.
How are PPF returns calculated?
According to the HDFC Bank website, here are key points you need to keep in mind when calculating your PPF Account’s returns.The interest on PPF is calculated on a monthly basis.
The lowest balance on a specific month's 5th and end date is considered for interest calculation. Let's say your account balance on 5th May is RS 5,000, and 30th May is Rs10,000. The interest will be calculated on Rs 5,000.
You must try to deposit your monthly contribution on or before the 5th of the month to maximise PPF returns.
Your PPF returns will be credited to your account at the end of the financial year.
PPF returns - Taxation
PPF falls within the Exempt-Exempt-Exempt group. To put it simply, the PPF deposit amount, interest earnings, and maturity value are all tax-free. You can claim tax advantages under Section 80C, with a maximum deduction limit of Rs 1.5 lakh. PPF adheres to Section 10 of the Income Tax Act when it comes to interest exemption.You can claim the tax benefits while filing Income Tax Return (ITR) at the end of every financial year. You are required to support your tax benefit claim with proof of investment documents.
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This story originally appeared on: India Times - Author:Faqs of Insurances
