By investing in PPF, you get more than Rs 40 lakh after 15 years. If you extend the maturity period two more times, your total deposit will exceed Rs 1 crore.
New Delhi. A person tries hard throughout his life to become a millionaire but very few are able to reach here. But not now. There is a government scheme in which if you invest Rs 416 every day, you can easily become a millionaire. We are talking about PPF. PPF means Public Provident Fund. This is a government scheme on which currently a return of 7.1 percent is being given.
If you save Rs 416 every day for PPF, it will become Rs 12500 per month. You will have to keep investing this amount for 15 years. In this way, you will get Rs 40.68 lakh on maturity of 15 years. In this, your original investment will be Rs 22.50 lakh and interest will be Rs 18.18 lakh. It is noteworthy that this calculation is being done at the rate of 7.1 percent. Its interest rate keeps changing.
How to become a millionaire
By investing Rs 12500 every month for 15 years, you will get more than Rs 40 lakh. But if you extend this scheme twice for 5 years each, then you will get a total of Rs 1.03 crore after 25 years. Your total investment in this will be Rs 37.50 lakh. Whereas your interest will increase a lot here. You will get Rs 65.58 lakh from interest. Here you have to note that if you want to extend the maturity period, then you will have to inform it to your bank 1 year in advance.
Provision of tax exemption
A major advantage of the PPF scheme is that the account holder gets tax exemption under Section 80C of the Income Tax Act. Account holders can avail rebate of up to Rs 1.5 lakh on PPF investments. No tax has to be paid on the interest received on PPF. This scheme is supported by the government, so your investment in it is safe.
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