How The Middle Class Can Double Their Public PF Income With A PPF Account

Interest rates on the PPF are now the highest after the EPF interest rate and the Sukanya Samriddhi Yojana interest rates.

An EEE investment is a Public Provident Fund (PPF) account, which is free from income tax up to a yearly investment of Rs 1.5 lakh. It should be mentioned that a working person may only have one PPF account and cannot invest more than Rs 1.5 lakh in a single year in their PPF account.

When a married man opens a PPF account in the name of his wife, he may double his PPF investment. This allows the earning person to put away up to Rs 3 lakh in PPF each year (Rs 1.5 lakh in his or her own account and Rs 1.5 lakh in his or her wife’s).

A PPF account opened in the name of one’s wife is a good option if one has maxed one’s PPF account limit in a given financial year and still wants tax-exempted income. The PPF investment maximum may be doubled to Rs 3 lakh by doing this.

Section 80c, which exempts investments from paying income tax, has a ceiling of Rs 1.5 lakh each year.

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Following the opening of a PPF account in your wife’s name, how does it all work out?

Investing in a spouse’s PPF account is a way for an earning person to continue to contribute to his or her spouse’s PPF account, while also contributing to the husband’s PPF income. In this instance, even if the interest earned by the woman on her PPF account throughout the year is combined with her husband’s income, she will still be free from paying taxes on it.

Investors with a low-risk tolerance and who do not wish to invest in market-linked financial instruments like mutual funds, stocks, NPS, etc. might consider this option.

Interest rates on PPFs now stand at 7.1 percent. That’s second only to EPF and Sukanya Samriddhi Yojana interest rates.

How to combine many PPF accounts in accordance with the Department of Posts circular PPF deposits are allowed if they don’t exceed the stipulated limit.

If the combined deposits in both accounts do not exceed the specified deposit maximum, a person may keep the PPF account of his or her choice (currently it is Rs 1.5 lakh per financial year). As long as you have two or more separate PPF accounts with the same operational agency (say, a bank and a post office), you may simply combine them utilising the method to transfer PPF accounts.

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I Varsha Chhirolya having an experience in digital marketing of 5 years, I am an account manager in CREATIVE Ad Agency.

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