Published By: Ishani Karmakar

How To Start Contributing To Your PPF Account

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.

What is a PPF account?

Banks in India provide PPF accounts to its customers as a service to the people of India; these accounts allow people to save money and earn interest tax-free, while also providing the security that comes with investing in a government-backed fund.

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.

Advice on making contributions to your PPF

After opening a PPF account, the next step is to decide how much money to put into it each month. But first, you should check the PPF interest rates you're receiving. A PPF calculator is the tool to use for this purpose. One can choose to invest either online or offline, just like one can start a PPF account any way. Let's have a look at the many options for making deposits into your PPF account.

Making an online PPF deposit

Putting money into your PPF account is as simple as making any other regular payment or transfer. You can make regular deposits of up to INR 1.5 million into your PPF account each year without violating the rules of your account. To begin making contributions to one's PPF account, one need just initiate a short procedure of transferring monies.

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.

Offline contributions to a PPF

While investing in your PPF account online has a number of benefits, including increased speed and 24/7 accessibility, some people still prefer to use the offline mode and make their contributions to their PPF account physically. The Public Provident Fund (PPF) accepts contributions made offline via a variety of payment channels. Payment can be made in the form of cash, checks, or demand drafts.