Public Provident Fund ie PPF is a very old and reliable medium of investment. In this, people not only get good returns, but it is also helpful in saving tax.
This is an investment coming in the EEE category. That is, there is no tax on investment, interest and maturity amount. Tax exemption is available on investment in PPF up to Rs 1.5 lakh annually.
Know how the investment limit in PPF is doubled
Investors in PPF not only get assured returns but also get income tax exemption under section 80C of Income Tax on investments up to Rs 1.5 lakh. It has been seen many times that even after the limit of PPF investment is over, investors are left with money and they are looking for investment options. According to tax experts, if the investor is married, then he can open a PPF account in the name of his wife or husband and invest Rs 1.5 lakh separately in it.
Benefits of investing in PPF
According to experts, opening a PPF account in the name of one’s life partner also doubles the limit of the investor’s PPF investment. Let us inform that even then the income tax exemption limit will remain only 1.5 lakh rupees. Even if you get only 1.5 lakh income tax exemption, but it has many other benefits as well. PPF investment limit doubles to Rs 3 lakh. Being in the EEE category, the investor gets tax exemption on the interest and maturity amount of PPF.
Income from any sum or gift given by you to your wife will be added to your income under section 64 of Income Tax. However, in the case of PPF which is completely tax free on account of the EEE category, the clubbing provisions have no effect.
Best tricks for married people
Married couple can double their money very easily. Investing in PPF account is considered safe. It also gives good returns. This is a very good option for those who do not want to take risks. People are a little nervous about market linked investments like NPS, Mutual Funds because there is a fear of losing money.
