Becoming a millionaire is everyone’s dream. But not all people become millionaires. This post office scheme can be useful for you if you want to become a millionaire due to your hard work. In this scheme the government takes full guarantee of your money. Which keeps your money perfectly safe.
Yes, you can become a millionaire by investing in Post Office Public Provident Fund Scheme. It gets good interest because of the government’s scheme. With this, you get tax exemption on various occasions.
You have to invest 12500 per month
Beneficial investment in Post Office Public Provident Fund Scheme
I will get Rs 1 crore this year
How much can you invest?
Under this scheme you can invest a maximum of Rs 1.50 lakh per year. No person shall invest in this scheme beyond this limit in any financial year. According to the old system of income tax, on the investment of this scheme you get an annual income of Rs. Investment up to Rs 1.50 lakh is tax deductible. Apart from this the scheme also gives you benefits under EEE.
With the start of the new financial year, everyone seems to be worried about tax savings with better investment. This is because ITR has to be filed after the financial year.
In which all the information related to the investment has to be given, on the basis of which we want to get the tax benefit. In the absence of this, you will have to pay taxes as per the rules. However, some of the savings schemes running at the post office give you the remedy. The last date for filing ITR for the financial year 2017-18 is August 31, 2018.
Not only good interest but you can also save a lot of income tax by investing in Post Office Savings Schemes. We give you information about these plans. Learn about post office schemes that offer tax benefits along with savings. Public Provident Fund (PPF):
The PPF account is for both job and business class. This account can be for both minors and adults. Its maturity is 15 years, which can be extended for another 5 years. It earns 7.6 per cent interest on deposits. Tax Benefit: A PPF account can be opened at a bank or post office and an investment of Rs 1.5 lakh within one year comes under the tax benefit under Section 80C of the Income Tax Department. Senior Citizen Savings Account (SCSS): This savings plan is especially for people over 60 years of age.
This is the best investment option for people over 60 years of age. However, retirees between the ages of 55 and 60, or VRS (voluntary retirement) recipients, can open this account up to three months before the retirement. This account can be opened from one thousand. The maximum investment limit is Rs. 15 lakh.
Read Full Details About This Scheme
The maturity period of this account is one year. This account can also be opened as a joint account with your spouse. It earns interest at 8.3 per cent. Tax Benefit: An investment of Rs 1.5 lakh within a year in this Post Office scheme falls under the tax-exempt area under Section 80C of the Income Tax Act, but the interest earned on this account is taxable. National Savings Certificate (NSC):
You should use National Savings Certificate if you want to get better returns with safe investment. The scheme has been introduced keeping in view the needs of government employees, businessmen and other money payers. In which there is no investment limit. There are two types of National Savings Letters, Type 1 (VIII Issue) and Type 2 (IX Issue). And TDS is not deducted on. Trusts and HUFs cannot invest in it. The deposit carries an interest rate of 7.6 per cent. Tax Benefit: It provides exemption under Section 80C of Income Tax on deposits. It also covers investments up to Rs 1.5 lakh during a financial year. Post Office Sukanya Samrudhi Account: This account to be opened in the post office is also wonderful. Under this scheme, a minimum of Rs. 1,000 and a maximum of Rs. 1,50,000 remains to be invested. Integrated investment can be made in this. There is no limit on the number of deposits in a month or in a financial year. The statutory guardian or the original guardian can open an account in the name of the girl. This account can be opened within the next 10 years of the girl’s birth. The account earns interest at 8.1 per cent. This account closes when the girl completes 21 years. Tax Benefit: Deposits in Sukanya Samrudhi account are tax deductible under Section 80C of the Income Tax Act.
Interest rate on PPF
The government fixes interest rates every quarter, including PPF, for many other schemes. The interest rate on PPF for April 2020 to June 2020 is 7.1%. The maturity of a PPF account is 15 years. However, anyone can extend it for more than five years on more than one occasion. For this he has to apply to the concerned bank and post office. For this, you have to fill Form 15H in the year of maturity.
To become a millionaire, you have to invest that much every month
You can invest Rs 12,500 per month i.e. Rs 1.5 lakh per annum. Accordingly, if you invest for 15 consecutive years, then after 15 years at an interest rate of 7.1%, your maturity sits around Rs 42.60 lakh. However if you increase the investment twice i.e. for ten years then after 25 years your maturity can be Rs 1 crore.
