According to tax and investment experts, the PPF account matures after 15 years of opening the PPF account. But, a PPF account holder can extend his PPF account beyond 15 years in a block of 5 years and the PPF account extension facility can be used for an infinite number of times.
Public Provident Fund i.e. PPF is one of the government backed small savings schemes which aims at providing assured returns at the time of maturity. Under Section 80C of the Income Tax Act, a PPF account holder can claim income tax exemption up to Rs 1.50 lakh invested in the scheme in a financial year. Apart from this, it is 100% risk free and has 100% tax benefit on PPF interest rate, which is currently 7.10 percent.
After 15 years, the limit can be increased for 5-5 years.
According to tax and investment experts, the PPF account matures after 15 years of opening the PPF account. But, a PPF account holder can extend his PPF account beyond 15 years in a block of 5 years and the PPF account extension facility can be used for an infinite number of times. Hence, one can become a millionaire at the time of PPF withdrawal, if properly invested in one’s PPF account.
How to deposit Rs 1 crore in PPF account
Sebi registered tax and investment expert Jitendra Solanki while talking to Mint that in order to deposit 1 crore in one’s PPF account, the account holder needs to exhaust his limit of 1.50 lakh in a financial year. it occurs. In PPF account, one can invest for 25 to 30 years. One becomes an earner in between 25 to 30 years and it takes time for the earner to become cautious about saving. Therefore, 30 to 35 years is the stage when one becomes proactive about tax-oriented-savings.
In this way, investments can be continued for a long period,
if the experts are to be believed, then the PPF rules allow account holders to extend their PPF account beyond maturity. But, to extend his PPF account, the account holder has to submit the PPF account extension form in the last year of maturity in the bank or post office wherever you have the account. PPF account can be extended in blocks of 5 years and there is no restriction on the number of times one can extend the maturity of his/her PPF account. So, for the first time, the investor has to submit the extension form in the 15th year of PPF account opening and then every 5th year of PPF account extension.
Here is the complete calculation
Assuming the current PPF interest rate of 7.10 for 30 years, the PPF interest calculator states that one needs to invest Rs 1,08,000 annually in their PPF account. As PPF allows an investor to make 12 deposits in a year, a PPF account holder can also invest this Rs 1,08,000 in 12 monthly installments of Rs 9,000 each. Hence, like mutual fund SIP, a PPF account holder can deposit Rs 1 crore by investing only Rs 9,000 per month in his PPF account for 30 years using the extension facility in 15th, 20th and 25th year of PPF account opening .
