Schemes that will be useful to save tax : The financial year 2022-23 is ending today on 31 March. In such a situation, if you want to save income tax for the financial year 2022-23, then today is the last day to invest. In such a situation, tax can be saved by investing in some tax saving schemes. Here we are going to tell you about one such tax saving scheme, knowing which you can save tax annually. Let’s know…
Many schemes are being run by the government in terms of income tax saving. There are different options available in these. A Public Provident Fund ie PPF is also included in these options. A tax benefit of up to Rs 1.5 lakh can be availed under Section 80C of the Income Tax Act by making an investment in PPF. PPF account can be opened in the post office. Apart from this, PPF scheme can also be started in banks.
Public provident fund
A Public Provident Fund (PPF) is one of the most prominent savings schemes. The minimum amount that can be deposited in a PPF account in a financial year is Rs 500, while the maximum limit in a financial year is Rs 1.5 lakh, that is, up to Rs 1.5 lakh can be invested in this scheme in a financial year. This scheme comes under the Central Government.
interest on ppf
Interest is earned on the amount deposited in the PPF account. At the same time, the current annual compound interest rate offered through PPF is 7.1 percent. PPF is a long term investment and its maturity period is 15 years. As per section 80C of the Income Tax Act, PPF account offers three times tax benefits. The interest earned in this scheme is exempt from tax and the amount received on maturity is also not taxable.