Updated PPF interest rate for Q4 2021-22
(→Loans) |
->Bhavesh Furia (Updated PPF interest rate for Q4 2021-22) |
||
| Line 1: | Line 1: | ||
{{tone|date=May 2014}}{{Use Indian English|date=June 2016}} | {{tone|date=May 2014}}{{Use Indian English|date=June 2016}} | ||
{{Use dmy dates|date=February 2021}} | {{Use dmy dates|date=February 2021}} | ||
The '''Public Provident Fund''' ('''PPF''') is a savings-cum-tax-saving instrument in [[India]],<ref>{{cite web|url=https://timesofindia.indiatimes.com/business/india-business/ppf-rate-to-fetch-7-6-why-it-is-still-a-winner/articleshow/62283053.cms|title=PPF rate to fetch 7.6%: Why it is still a winner}}</ref> introduced by the National Savings Institute of the Ministry of Finance in 1968. The aim of the scheme is to mobilize small savings by offering an investment with reasonable returns combined with income tax benefits.<ref>{{cite web |title=PPF Scheme |url=https://www.sbi.co.in/portal/web/personal-banking/public-provident-fund-ppf |access-date=20 October 2014}}</ref> The scheme is fully guaranteed by the [[Government of India|Central Government]]. Balance in PPF account is not subject to attachment under any order or decree of court. However, Income Tax & other Government authorities can attach the account for recovering tax dues.<ref name=":0">{{Cite web|title=Tax Laws & Rules > Rules > Public Provident Fund Scheme, 1968|url=https://www.incometaxindia.gov.in/pages/rules/public-provident-fund-scheme.aspx|access-date=18 July 2020|website=www.incometaxindia.gov.in}}</ref> | The '''Public Provident Fund''' ('''PPF''') is a savings-cum-tax-saving instrument in [[India]],<ref>{{cite web|url=https://timesofindia.indiatimes.com/business/india-business/ppf-rate-to-fetch-7-6-why-it-is-still-a-winner/articleshow/62283053.cms|title=PPF rate to fetch 7.6%: Why it is still a winner}}</ref> introduced by the National Savings Institute of the Ministry of Finance in 1968. The aim of the scheme is to mobilize small savings by offering an investment with reasonable returns combined with income tax benefits.<ref>{{cite web |title=PPF Scheme |url=https://www.sbi.co.in/portal/web/personal-banking/public-provident-fund-ppf |access-date=20 October 2014}}</ref> The scheme is fully guaranteed by the [[Government of India|Central Government]]. Balance in PPF account is not subject to attachment under any order or decree of court under the Government Savings Banks Act, 1873. However, Income Tax & other Government authorities can attach the account for recovering tax dues.<ref name=":0">{{Cite web|title=Tax Laws & Rules > Rules > Public Provident Fund Scheme, 1968|url=https://www.incometaxindia.gov.in/pages/rules/public-provident-fund-scheme.aspx|access-date=18 July 2020|website=www.incometaxindia.gov.in}}</ref>The balance of a PPF account is fully exempt from wealth tax. | ||
Public Provident Fund Scheme, 2019 introduced by the Government on 12 December 2019 and with the new scheme the earlier Public Provident Fund Scheme, 1968 as amended from time to time is rescinded. | Public Provident Fund Scheme, 2019 introduced by the Government on 12 December 2019 and with the new scheme the earlier Public Provident Fund Scheme, 1968 as amended from time to time is rescinded. | ||
| Line 119: | Line 119: | ||
!Interest Rate | !Interest Rate | ||
|- | |- | ||
|April 2021 – | |April 2021 – March 2022 <ref>{{Cite news|url=https://dea.gov.in/sites/default/files/Q1%20RoI.pdf|title=Revision of Interest Rates for Small Savings Schemes for Q1 of 2021-22. | ||
|date=1 April 2021|work=dea.gov.in/|access-date=1 April 2021|language=en}}</ref><ref>{{Cite news|url=https://dea.gov.in/sites/default/files/Document%2017-2.pdf|title=Revision of interest | |date=1 April 2021|work=dea.gov.in/|access-date=1 April 2021|language=en}}</ref><ref>{{Cite news|url=https://dea.gov.in/sites/default/files/Document%2017-2.pdf|title=Revision of rate of interest for Small Savings Schemes for Q2 of FY 2021-22 | ||
|date=30 June 2021|work=dea.gov.in/|access-date=1 July 2021|language=en}}</ref><ref>{{Cite news|url=https://dea.gov.in/sites/default/files/RoI.pdf|title=Revision of rate of interest for Small Savings Schemes for Q3 of FY 2021-22 | |date=30 June 2021|work=dea.gov.in/|access-date=1 July 2021|language=en}}</ref><ref>{{Cite news|url=https://dea.gov.in/sites/default/files/RoI.pdf|title=Revision of rate of interest for Small Savings Schemes for Q3 of FY 2021-22 | ||
|date=30 September 2021|work=dea.gov.in/|access-date=30 Sep 2021|language=en}}</ref> | |date=30 September 2021|work=dea.gov.in/|access-date=30 Sep 2021|language=en}}</ref><ref>{{Cite news|url=https://dea.gov.in/sites/default/files/q4.pdf|title=Revision of rate of interest for Small Savings Schemes for Q4 of FY 2021-22 | ||
|date=31 December 2021|work=dea.gov.in/|access-date=31 Dec 2021|language=en}}</ref> | |||
|7.1% | |7.1% | ||
|} | |} | ||
| Line 189: | Line 190: | ||
==PPF tax concessions== | ==PPF tax concessions== | ||
Annual contributions qualify for tax deduction under Section 80C of income tax. The tax benefit is capped at ₹1.5 lacs per financial year. | Annual contributions qualify for tax deduction under Section 80C of income tax as per the old Tax regime. The tax benefit is capped at ₹1.5 lacs per financial year. | ||
PPF falls under EEE (Exempt, Exempt, Exempt) tax basket. Contribution to PPF account is eligible for tax benefit under Section 80C of the [[The Income-tax Act, 1961|Income Tax Act]] in the old Tax Regime. Interest earned is exempt from income tax and maturity proceeds are also exempt from tax.<ref name=":0" /> | |||
According to R.K. Mohapatra, General Manager-Finance,<ref>{{Cite web|title=PressReader.com - Digital Newspaper & Magazine Subscriptions|url=https://www.pressreader.com/india/the-free-press-journal/20201006/282729114356843|access-date=2021-12-26|website=www.pressreader.com}}</ref> [[Ircon International|IRCON International]],<ref>{{Cite web|title=Despite Falling Interest Rates, PPF Still A Sound Investment Option|url=https://www.outlookindia.com/outlookmoney/investment/despite-falling-interest-rates-ppf-still-a-sound-investment-option-4976-4976|access-date=2021-12-25|website=https://www.outlookindia.com/outlookmoney/|language=en}}</ref> and author of the award-winning book ‘Retirement Planning: A Simple Guide for Individuals’, in the falling interest rate era, investment in PPF make senses for people who are in higher income tax brackets because of the advantages of exempt-exempt-exempt (EEE) scheme, which means they get tax deduction under Section 80C when they invest, and the accrual of interest as well as withdrawal is completely tax-free. | |||
==See also== | ==See also== | ||