Public provident fund {final}

7,021 views

Published on

Published in: Economy & Finance, Business
0 Comments
9 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
7,021
On SlideShare
0
From Embeds
0
Number of Embeds
13
Actions
Shares
0
Downloads
496
Comments
0
Likes
9
Embeds 0
No embeds

No notes for slide

Public provident fund {final}

  1. 1. INVESTMENTS BY :-AFTAB.MULLA 34
  2. 2. INTRODUCTION7 MUST KNOW FACTS ABOUT PPFFEATURES OF PPFWHO SHOULD INVEST & WHO SHOULD NOT INVESTPPF UPDATED AS PER NEW RULESADVANTAGES OF PPFDISADVANTAGES OF PPFRECOMMENDATION
  3. 3. STATURORY SCHEME OF THE CENTRALGOVERNMENT OF INDIATHE SCHEME IS FOR 15 YEARSLONG TERM INVESTMENT OPTION THAT SUITS ALLINVESTORSHIGH ON SAFETYCOMES WITH TAX BENEFITS,LOAN OPTIONS AND ALOW MAINTENANCE COST
  4. 4. IT REQUIRES JUST Rs. 100 TO START A PPF A/CPPF A/C HAVE A MINIMUM & MAXIMUM DEPOSIT LIMITINTREST CALCULATION IN PPF A/CPREMATURE WITHDRAWAL FROM PPFPPF OFFERS MULTIPLE TAX BENEFITSNEED A LOAN? USE YOUR PPFCONTINUING PPF AFTER THE 15 YEAR PERIOD
  5. 5. Here is an example to demonstrate the returnson your PPF. The assumed interest rate is 8%(compounded annually) and the investment is12000/- Rupees per year for 15 years.
  6. 6. Opening Total Closing Withdrawal LoanYrs. Investment Interest Balance Investment Balance Limit Possible 1 0 12,000 12,000 960 12,960 – – 2 12,960 12,000 24,960 1,997 26,957 – – 3 26,957 12,000 38,957 3,117 42,073 – 3,240 4 42,073 12,000 54,073 4,326 58,399 – 6,739 5 58,399 12,000 70,399 5,632 76,031 – 10,518 6 76,031 12,000 88,031 7,042 95,074 – – 7 95,074 12,000 107,074 8,566 115,640 29,200 – 8 115,640 12,000 127,640 10,211 137,851 38,016 – 9 137,851 12,000 149,851 11,988 161,839 47,537 –10 161,839 12,000 173,839 13,907 187,746 57,820 –11 187,746 12,000 199,746 15,980 215,726 68,925 –12 215,726 12,000 227,726 18,218 245,944 80,919 –13 245,944 12,000 257,944 20,635 278,579 93,873 –
  7. 7. As you can see, an investment of 12000 /-Rupees per year for 15 years has grown into3, 51,891 /- Rupees (1, 80,000 Rupees was thetotal amount invested and the rest is interestaccrued.)
  8. 8. YOU SHOULD CONSIDER INVESTING IN PPFIF :-YOU WANT A STABLE CORPUS FOR RETIREMENT ANDARE RISK-AVERSE i.e. DON’T WANT TO INVEST INEQUITYYOU WANT TAX EXEMPTIONS UNDER SECTION 80CYOU ARE A NON-SALARIED/BUSINESS PERSON
  9. 9. PPF IS PROBABNLY NOT FOR YOU IF YOUARE :-IF YOU ARE YOUNG YOU SHOULD INVEST IN EQUITIES. INTHE LONG RUN, RETURNS FROM EQUITIES BEATEVERYTHINGYOU ARE NOT ELIGIBLE FOR TAXATION. (YOU WON’T NEEDTHE TAX BENEFITS)
  10. 10. INTEREST 8.6% p.a. (COUMOUNDED ANNUALLY)MIN AMOUNT : RS.5OO & ADDITIONAL INVESTMENT IN MULTIPLES OFRs.5. MAXIMUM Rs.1,00,000A PPF A/C CAN BE OPENED ANYTIME THROUGH OUT THE YEARNOMINATION CAN BE DONE AT THE TIME OF OPENING THE A/C ORDURING THE TENOR OF THE ACCOUNTADDITIONAL BLOCK OF 5 YRS CAN BE EXCERCISED AFTER MATURITY (15YRS) ALSO
  11. 11. FIRST LOAN CAN BE TAKEN IN THE 3RD FINANCIAL YEAR FROMTHE DATE OF OPENING THE A/CLOAN TAKEN BY THE SUBSCRIBER OF PPF A/C AFTER 01.12.2011WILL B CHARGED 2% p.a. {PREVIOUSLY 1% p.a.}TAX BENEFIT CAN BE AVAILED UNDER SECTION 88THE A/C CAN BE TRANSFERRED ON REQUEST (INCLUDING BANKTO POST OFFICE)NON-RESIDENT CANALSO OPEN PPF A/C IN BANKS{NON-RESIDENT ACCOUNT}
  12. 12. EXCELLENT WAY TO GET TAX EXEMPTIONS {UNDER SECTION80C}INTEREST RATE IS HIGH COMPARED TO OTHER DEBTINSTRUMENTS LIKE FIXED DEPOSITS {BECAUSE THE INTRESTEARNED BY YOU WILL BE TAX FREE}NEGLIGIBLE RISK OF DEFAULT {BACKED BY GOVT. OF INDIA}EXCELLENT TOOL FOR RETIREMENT PLANNING {ESPECIALLYFOR NON-SALARIED PERSON}
  13. 13. www.investmentguru.comwww.wikipedia.comwww.google.com

×