The minister of civil aviation Jyotiraditya Scindia & Congress Leader Rahul Gandhi both had declared siginificant assets in their affidevits. The most eye catching in their filing was the amount invested in PPF. The minister Jyotiraditya Scindia has declared 43.26 Lakhs in PPF corpus. On the other hand the prince of congress Rahul Gandhi has declared 61.52 lakhs in PPF.
PPF is the most underrated instrument when it comes to investment.
Lets dive into finer details of PPF.
What is PPF?
In 1968, the Ministry of Finance's National Savings Institute launched the Public Provident Fund, an Indian savings and tax saving scheme. The primary goal of the program is to encourage small savings by providing an investment with respectable returns along with advantages related to income tax.
Who is Eligible for PPF?
Individuals who are residents or who are acting on behalf of a minor over whom they have custody may open an account. PPF accounts cannot be held jointly. Opening an account under the Public Provident Fund Scheme is not permitted for Non-Resident Indians (NRIs). On the other hand, a resident who turns into an NRI within the 15-year Public Provident Fund Scheme may keep making non-repatriation fund contributions until the fund matures. Only one PPF account may be opened by a person, and that account must be declared at the time of opening.
Returns On PPF
As of April 2024, the Ministry of Finance's current PPF account interest rate for the current quarter 2023–24 is 7.10 per cent. p.a.In 15 years, a corpus of Rs 40.68 lakh could be created by investing the maximum amount of Rs 1.5 lakh annually in a PPF account. However, choosing extensions whether or not to include contributions can also cause the maturity amount to increase.
(Disclaimer : This is not an investment advice. Investors should make informed decision & consult your financial advisor).
