PSA for PPF investors: Invest INR 1.5L before April 5th to avail maximum interest for the FY.

[joey13]

@304 I commented this one another thread,

I'm dumbo and still didn't get it. Could you please elaborate?
Is the point that, even if the initial investment doesn't get the tax benefit (since we already exhaust 80C with EPF), the returns are tax exempt, hence making it a better debt instrument?

Is my understanding on the right path ?

 

[304]

@joey13 Yes you seem to be on the right path.

But just to be sure , what other investment options are you aware of, and do you know about the tax implications of their interest(returns) and withdrawals?

 

[john_177]

@304 Why you acting all high and mighty like you're some big authority on this topic lol

 

[justafriendlyathiest]

@304 Does this count in new regime?

 

[ladybee]

@justafriendlyathiest As deduction? No

 

[zealotx]

@jossystephan Why do you all invest 1.5L in ppf, don't you have other 80c investments??

For me, i know that most of 80c gets covered by life insurance and epf+vpf

And whatever little is left, i invest in march after calculating,

Cuz salary increases in jan, and i wont know for sure how much of 1.5L is left to invest until feb or march

The one thing i can do is, i can invest in vpf in 1st month only by allocating max % of 1.5L, n then stopping it, that is if same logic applies to VPF, can you confirm this?

 

[whigg]

@zealotx I invest in PPF because 1.5L per year is not much for me and PPF gives decent returns and is tax free. Its also very safe.

 

[wazz]

@whigg The total amount including the principal and interest is tax free ?

 

[whigg]

@wazz Yes.

 

[wazz]

@whigg Bro. Let’s say I invest in PPF and I want to claim the entire PPF amount after 15 years. I understand that the principle and interest is all tax free but is there any formal procedure to cash it out ? Meaning , do we have to show proof that we need it ? Or I can withdraw it however I want after 15 years and no one is going to stop me from withdrawing the entire amount ?

 

[whigg]

@wazz No you dont need to show any proof. The maturity date for the scheme would be 15 years after and youll get all your money no questions asked. Just google for more info.

 

[imnw]

@whigg Why to invest in PPF. I thought ELSS is better investment?

 

[whigg]

@imnw I invest in both

 

[imnw]

@whigg So you put 75k in PPF and 75k in ELSS?

 

[maurie]

@imnw

I invest in PPF because 1.5L per year is not much for me

This is your hint

 

[zealotx]

@whigg Dont you have epf / vpf?

 

[glasmom]

@zealotx even that now has a limit , above that its taxable.

PPF is EEE model. investment and interest both tax free and guaranteed return

 

[zealotx]

@glasmom The limit is 2.5L, which is more than 1.5L already.

And isn't epf mandatory? If it's already crossing 1.5L, you still invest in ppf?

 

[glasmom]

@zealotx the point is u are looking it to exhaust 80c with pf, these two are different things buddy.

 

[zealotx]

@glasmom Yeaa, i realized now, makes sense!