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

[joey13]

@zealotx 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?

 

[zealotx]

@joey13 Yup, you got it!

 

[joey13]

@zealotx Got it, thanks.

 

[usernameless]

@zealotx Why treat the 1.5L tax limit as a hard upper limit. In my opinion, the PPF is worth investing even if you have already completed your 1.5 LPA 80C limit.

 

[zealotx]

@usernameless Oooh, got it, makes sense

 

[lovemygod]

@zealotx 37% tax on other debt instruments. I fall in 50L+ tax bracket. This is the only instrument that gives 7.1% tax free that too guaranteed.

 

[zealotx]

@lovemygod Dont you have epf/vpf?

 

[lovemygod]

@zealotx VPF is taxable after 2.5L. My regular salary EPF cut falls in that bracket.

 

[chrisplum]

@zealotx Investing in PPF is not just about fulfilling 80C limits. I'm in New Regime and don't even have 80C deductions but still invest 1.5L in PPF as part of my broader portfolio allocation.

 

[ready2thrive]

@zealotx Insurance is not investment

Now repeat 100 times

 

[zealotx]

@ready2thrive I havent taken it as investment, but i can definitely claim it in 80c

 

[consolatio]

@zealotx What if I already have a big amount in FDs as debt? Does it still make sense to invest in PPF over ELSS for 80C?

 

[ania]

@consolatio FD interest is taxable, ppf not so upto deposit of 1.5lac/year

 

[brandim]

@zealotx If EPF than PPF gives better returns, why invest in PPF?

 

[ezzeking]

@brandim Why not invest in both?

 

[mamalovesme]

@brandim There is some 30% rejection rate while redeeming EPF. No such issue with PPF so far.

 

[brandim]

@mamalovesme What type of rejection?

 

[mamalovesme]

@brandim https://indianexpress.com/article/b...sees-surge-in-5-yrs-up-from-13-to-34-9177874/

 

[brandim]

@mamalovesme This is terrible news. EPF can't even manage to transition properly into an online system to avoid wrong rejection of claims.

 

[retiredbanker]

@mamalovesme Nah