People who have a Public Provident Fund (PPF) account must make their contribution for the fiscal year 2023–24 by April 5 to get the most out of their investment.
The interest rate on the PPF balance will be decreased if a deposit for the current fiscal year is made after April 5. According to PPF plan rules, interest is computed based on the lowest balance in the PPF account at the end of the fifth day of the month and the end of the month. If an individual makes a lump sum investment, the money must be credited to the PPF account by April 5.
According to the PPF plan guidelines, interest is calculated monthly but credited at the end of the fiscal year. As a result, if a person makes monthly payments to a PPF account, make sure the money is credited to the account before the fifth of each month to receive more interest.
The Public Provident Fund Account (PPF) is adaptable, inexpensive, and accessible to all Indian citizens. A guardian can also choose PPF on behalf of a minor. The account gives a yearly compounded interest rate of 7.1%. PPF investments start as low as Rs. 500 and go as high as Rs. 1.5 lakh per fiscal year.
Although the maximum amount that can be contributed to the PPF each year is restricted to Rs.1.5 lakh, making a single contribution of this amount at the beginning of the financial year (on or before April 5th) will result in the interest being added for the entirety of the financial year.
It is worth noting that the PPF enjoys dual tax benefits, as both withdrawals and interest added to the money in the PPF accounts are tax-free under section 80C of the Income Tax Act.
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