What If I Invest More Than 1.5 Lakhs In PPF?

Can I increase my PPF amount?

After 15 years, PPF Account can be extended after maturity with deposits within 1 year of the of date of maturity original PPF Account or it can be extended by submitting the application in Form-4, instead of Form H used earlier..

Can I invest more than 1.5 lakhs in 80c?

Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act.

Is PF part of 1.5 lakh investment?

Employees Provident Fund (EPF) and Public Provident Fund (PPF) along with other investments like life insurance premiums, ELSS, tuition fees of children, NSC, home loan principal, tax saving FDs etc all put together can get a deduction of only up to ₹1.5 lakh in the current financial year.

Can I have 2 PPF accounts?

For an individual, only one PPF account is allowed to be opened in one’s name. However, there are chances that one ends up holding multiple PPF accounts in one’s name. It could also include holding one account in the post office and one in the bank.

How can I save tax after 1.5 lakhs?

I. Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount. This, in effect, reduces your taxable income and reduces your tax liability.

Where can I invest money to save tax?

Which investments can reduce your tax bill?Interest income. If you have a savings account or a money market fund, you will receive interest income. … Dividend income. If you buy shares in publicly traded companies, you may receive dividends, a company’s way of sharing its profits with its shareholders. … Capital gains or losses.

Can I continue PPF after 15 years?

Close the account and withdraw entire proceeds: A PPF account can be closed only on the expiry of 15 years from the end of the year in which the initial subscription was made into the account. … You have the option of extending your PPF account after it matures. You can extend it indefinitely in a block of five years.

What is the limit for PPF deposit?

₹150,000The maximum amount which can be deposited every year is ₹150,000 in an account at present. The interest earned on the PPF subscription is compounded annually. All the balance that accumulates over time is exempted from wealth tax.

Is PPF better than LIC?

The Public Provident Fund tends to provide a far superior rate of returns compared to an LIC policy like Jeevan Anand. What you should do is invest in the PPF and take a term policy online, which is cheaper and faster. In the term policy you do not get your money back, but, you are provided with solid insurance.

How can I get maximum tax benefit in India?

Section 80C. Some of the best options to save tax available to individuals and HUFs in India are under Section 80C of the Income Tax Act. … Equity Linked Savings Scheme. … PPF (Public Provident Fund) … National Savings Certificate. … Tax-Saver FDs. … Senior Citizens Savings Scheme. … Sukanya Samriddhi Yojana. … Employee Provident Fund.More items…•

How much I will get in PPF after 15 years?

1,00,000 towards your PPF investment for 15 years at 7.1%, your maturity proceeds at the end of 15 years would be Rs. 31,17,276 .

Is PPF a good investment?

Whereas FDs are good to invest but interest earned are taxable. So, the best investment option for the long-term wealth creation is PPF (Public Provident Fund) along with tax-saving benefits. PPF is not only best for creating long-term wealth but it is also a tax safe investment that is backed by the government.