PPF Tips: Now you will get double interest in PPF! A small trick will do wonders..

PPF Double Interest: Investing in a Public Provident Fund (PPF) is a great option for good interest and tax savings. Most Indians like to invest in this scheme. It is guaranteed by the government. The special thing is that this investment has been placed in the E-E-E category. This means that your investment, interest, and maturity amount are all completely tax-free. Tax exemption is available on investments up to Rs 1.5 lakh annually in PPF. But, you can increase this investment and you can also get the benefit of double interest. Let's understand.

How is investment doubled in PPF?

Those who claim the old tax regime in PPF get tax exemption on investment up to Rs 1.5 lakh under section 80C of Income Tax. The maximum investment limit in the Public Provident Fund is Rs 1.5 lakh. You can deposit money 12 times a year. But, here is a useful thing for married investors. If you open a PPF account in the name of your partner, you can double your investment in a financial year and also get the benefit of interest on both accounts.

What are the benefits of investing in PPF?

Experts say that by opening a PPF account in the name of your life partner, the investor can invest in PPF instead of his other investment option. In such a situation, he will have two options. The first one can deposit up to Rs 1.5 lakh in his account. At the same time, the second one can also deposit Rs 1.5 lakh in the name of the partner in a financial year. Different interests will be available on both these accounts. At the same time, tax exemption of up to Rs 1.5 lakh can be taken on any one account. In such a situation, your PPF investment limit will double to Rs 3 lakh. Due to coming under the E-E-E category, the investor will also get the benefit of tax exemption on PPF interest and maturity amount.

No effect of clubbing provisions

Under Section 64 of Income Tax, any amount or gift income given by you to your wife will be added to your income. However, in the case of PPF, which is completely tax free due to EEE, the provisions of clubbing have no effect.

Trick for married people

At the same time, when your partner's PPF account matures in the future, the income from your initial investment in your partner's PPF account will be added to your income year after year. Therefore, this option also gives married people an opportunity to double their contribution to the PPF account. The interest rate of PPF for the April-June 2025 quarter is fixed at 7.1 percent.

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