It is a legal obligation for citizens to contribute a portion of their income to the government.
This income tax is levied on the profits some people make from their businesses and investments, while others must include it in their take-home pay. However, the Income Tax agency has also fashioned out a number of channels via which individuals may save taxes and save for the future, in addition to having indicated several tax bands for individuals based on income. A PPF account is a good illustration of the type of service offered by section 80C of the IT act. This article will discuss the various PPF interest rates, how to register a PPF account online, and the numerous ways in which you may begin contributing to your PPF account.
One of the benefits of creating a PPF account is that contributions and interest gained on contributions up to Rs. 1.5 lakhs per year are exempt from income tax. It's important to remember that a PPF is a long-term investment opportunity. There is a 15-year commitment after that. After this point, the investor has the option of withdrawing his or her money (perhaps subject to capital gains taxes) or extending the life of the fund.
To begin making electronic deposits to your PPF, you must first designate the account as a beneficiary using your bank's online banking system. Once you've done this, you may use your PPF account online to make regular investments based on your ability to do so.
One additional perk of opening a PPF account online is the option to set up recurring payments. In addition to contributing to your PPF account manually, you may also set up recurring investments using your bank's online or mobile banking platform.
