Hi there Garima,
If you always look for ways to save taxes you must be well aware about PPF or Public Provident Fund. I recently joined the corporate world and I was new to the tax system as well. It was then that my friend told me about PPF. The concept amazed me because I got to know that PPF is a long term investment scheme which serves to provide a very good rate of interest and returns on the investments made. It is a great way of saving taxes since the returns and rates of interest earned under PPF are not taxable under Income Tax. But what is crucial to know here is the PPF minimum contribution.
Need help in drafting and registration of sale deed and agreement? Try out No Broker’s Legal Services and get expert help from leading advocates.But before we understand the minimum contribution in PPF, let's take a look at the importance of PPF accounts.
PPF is associated with zero to very low risk. So if you are someone who has a very low risk appetite, you can invest in PPF and save taxes.
PPF is not linked to the market and hence changes in the market does not affect the PPF returns. It is a government-backed scheme and due to its non-linkage with the market, it provides assured returns on the investments made in it to protect the needs of investment of the people investing in it.
Apart from offering tax benefits, PPF also serves as a diversification tool for the portfolio of an investor since PPF has a fixed rate of returns.
Now that we understand the importance of PPF too, let’s understand the PPF minimum contribution. The minimum contribution in PPF or the minimum investment is said to be Rs. 500 and the maximum investment is said to be Rs. 1.5 lakh for every financial year. These investments can be made in two ways-in a lump sum, or in the instalment of 12 months.
I hope now you know what PPF is and what the PPF minimum contribution is. Do tell me the replies if this answer was helpful to you.
Read More: How to Check PPF Balance? Is PPF Taxable? How to Transfer PPF Account from one Bank to Another?Your Feedback Matters! How was this Answer?
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Authors Of The Question
What is PPF Minimum Contribution?
Garima
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1 Answers
2 Year
2022-05-13T13:52:34+00:00 2022-05-18T17:35:09+00:00Comment
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