The max that is tax deductible is 1.5 lacs. But can I deposit rs 10 lacs in ppf. How much will I get as interest? For 10 lacs or only 1.5 lacs. How much can I withdraw after the mandatory period?
Re: PPF
by Narayanan on Aug 12, 2016 04:14 PM
The present rate of interest is 8.1%.The income tax is only for 1.5 lacs why you want to invest in PPF when there many other areas for investments for more returns than PPF.If you want money you canot withdraw.After 3 years you can loan for whifch you will have to pay 2% more interest.
One more major advantage of PPF is compounding. You earn interest on interest credit every year to the account. Best and tension free investment for long term corpus creation.
The PPF account holders are permitted to withdraw 50% of the closing balance after 7 years.This withdrawal can be continued till the closing of the account.Once you are having a balance of 9 lacs you can withdraw 1.5 lacs in each year in the beginning of the financial year and deposit after few days the same amount in the same year to claim income tax rebate. PPF accounts are EXEMPT,EXEMPT,EXEMPT means Tax exemption on deposit,no tax on interest earning and no tax on partial or final withdrawal.By 1.5 lac withdrawal every year without any additional amount you can get income tax rebate depending upon your tax slab minimum 10% plus interest 8.1% .Thus you will be able to earn 18.1% annually.
