Skip to main content

Higher interest rate on PPF

Tax Saving Mutual Funds Online

Buy Gold Mutual Funds 

WITH an increase in interest rate on public provident fund (PPF) deposits to 8.6 per cent and enhanced limit of up to Rs 1,00,000 for availing tax benefits, PPF deposits looks like a good long-term investment option. These deposits are also eligible for deduction under Section 80C of the Income Tax Act.

Maturity period: In long term planning, financial advisers recommend PPF as one of the means to build wealth. The maturity period is 15 years from the close of the financial year in which the initial subscription was made. At the end of this period, you get the entire amount (principal and interest earned). The maturity date depends on the financial year, and not on the date of its opening. An individual is allowed to open only one PPF account.

PPF gives best post-tax returns. Individuals falling in the higher tax brackets should make use of this investment option. The return is guaranteed and with no risk involved.

This tool allows you flexibility to invest, depending on your financial position. Minimum investment required every year is Rs 500. You can vary the deposit amount as per your convenience.


How to open PPF account?

You can open PPF account in a bank or a post office near you. Opening the account involves filling up of application form and the tendering of cash / cheque for initial subscription.

Along with the form, you will have to submit documents such as passport size photograph, PAN and address proof. When you open the account, you will be given a passbook. The passbook needs to be updated for every investment you make and for the interest you receive. You can open PPF account for minors too.

Withdrawal clause: Though the PPF deposits have a lock-in period of 15 years (which means it can't be closed before 15 years), one can make partial withdrawal in seventh year of the account. You can make only one withdrawal every year.
The amount of withdrawal is limited to 50 per cent of the balance in your account year.


Extension of PPF deposits: Even after expiry of 15 years, the PPF account can be extended for one or more blocks of five years each. You will still earn interest on your investment and avail the tax deduction.

To keep your PPF account active, you need to make at least a minimum deposit every year, or else, your account will become inactive and you become ineligible for loan as well as partial withdrawal. However, you can revive the discontinued PPF account after pay ing the prescribed default fee of Rs 50 per year along with subscription arrears, minimum of Rs 500 for each such year. Even if the account is discontinued, the repayment of subscriptions along with interest would only be credited after the lock-in period of 15 years.

"Preclosure of PPF account is allowed only in case of death of account holder.
Account is transferable from one post office to another, from post office to a bank, and from bank to a post office," said an official of State Bank of India.

In case of preclosure, corpus is paid to the nominee.


Appointing a nominee is important, as it will prevent your legal heir from hassles later on. You can also change nominee anytime in future based on the need.

 

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

 

Popular posts from this blog

Stick to Good Fund Manager who Can Multiply Your Investment

A manager may be the difference between the best and worst funds. Here's how you can find the right one    Does a mutual fund manager make a difference to your investment? The answer may not be as easy as you think, since most best-performing mutual funds have moved away from individualistic fund management to process-driven methods, limiting the scope of an individual's role in investment decisions. In fact, many fund managers would speak at length about how the "system" their fund house has in place makes their task of picking stocks easy even though it restricts their freedom. Still, the question is important, especially after recent reports that the Securities and Exchange Board of India ( Sebi ) may ask fund managers to disclose to investors their track record of managing money. Let us take a look at the universe of large-cap funds over the past five years. According to Value Research, an independent mutual fund tracking firm, the topper in the category is DSP...
Read more

Tata Fixed Income Portfolio Fund dividend

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)       Tata Mutual Fund has announced dividend under the dividend option of Tata Fixed Income Portfolio Scheme B2 Plan A-DQ, Tata Fixed Income Portfolio Scheme B2 Reg-DQ and Tata Fixed Income Portfolio Scheme B2 Direct-DQ. The record date has been fixed as August 29, 2013. Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C. Invest Tax Saving Mutual Funds Onlin...
Read more

NRIs and direct taxes code (DTC)

DTC Proposes To Do Away With Special Provision That Allows NRIs Liberalised Duration Of Stay In Country      THE new direct taxes code could bring a large number of global Indians under the tax net, as it does away with a provision that allowed individuals to escape tax in any country citing double tax avoidance.    The new legislation, introduced in Parliament on Monday, says an individual shall be a resident of India in any financial year if he is in the country for more than 59 days in that year, and has been has been India for more 365 days in four preceding financial years. A number of Indian industrialists including Vedanta's Anil Agarwal and Essar's Ravi Ruia have acquired non-resident status over the years.    The DTC has only attempted to clean up the provision in line with the laws globally. A phrase "being outside India" in the existing income tax law exempted individuals who stay outside the country for six months from paying taxes. This was prone ...
Read more

How to gauge the risk profile of your mutual fund portfolio?

MUTUAL funds are considered to be an investment option for those who do not generally devote a lot of time to monitoring and managing their portfolios. Investors experience both good as well as tough times as far as mutual fund investments are concerned. But while evaluating the portfolio of their equity mutual fund holdings there are a few points that one should check to know about the level of risk that they are facing. Often there are situations where there is a higher risk than what was estimated initially. Here are a few ways to evaluate various risk levels. Individual holding exposure : The portfolio of the equity fund where one has invested or plans to invest needs to be scrutinised to see whether the risk levels are such that could lead to a larger volatility in the holdings. Depending upon this factor and the risk taking ability of the investor the choice about a particular fund as an investment should be made. One key point to watch out is whether there is a large ex...
Read more

Health insurance guide - Part I

Insurance, by definition, is morbid. What if I die suddenly? What if my home caught fire? What if I had to undergo expensive medical treatment? What if something that I thought happened only to others befell me? Insurers, who work with large samples, calculate the probability of such an event and, hence, the possibility of them having to pay out a sum of money to mitigate, to the extent possible, the effects of that disaster. However, the possibility of you undergoing some kind of expensive medical treatment during your lifetime is far more likely than you dying suddenly or your house burning down. Given that costs at private healthcare facilities, where you are most likely to land up, is high, and, doubling every four years 10 months or so, the rest of your money life could easily go out of whack if you had to incur such expenses. Just 12 per cent of India's population is covered with some sort of health insurance. Pared to the bone, for a comparatively small price, health insu...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now