New Delhi54 minutes ago
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If you are planning to start investment in the name of the child, then you can invest in Public Provident Fund (PPF) scheme. This scheme is currently being paid 7.1% annually. You can easily prepare a fund of millions for it by opening a PPF account in the name of your child. But there are some special rules. We are telling you about those rules.
A person can open PPF account in the name of the same child A person can open only one PPF account in his name. However, apart from his PPF account, a person can open another PPF account in the name of a minor child. But the thing to note here is that a guardian (Guardian) can open a PPF account in the name of the same child. According to the rules, if someone has two children, then the PPF account of a minor child can be opened mother and the other’s father. Both mother and father cannot open a minor PPF account in the name of the same child.
How much money can you deposit? A deposit limit of at least 500 and maximum Rs 1.5 lakh is also applicable for the minor’s PPF account. But if the mother and father also have their own PPF account, then the maximum deposit limit will be Rs 1.5 lakh annually, including both their own account and the minor’s PPF account.
The child can handle his account when the child is 18 years old After the minor child turns 18 years old, the status of the account will have to be applied to Major from the Minor. After this, the adult child can handle his account with himself. In special cases, it can be closed after the completion of 5 years of the account. For example, if the child needs money for higher education or treatment of any disease, etc.
The maturity period remains 15 years old The PPF account is matured in 15 years. If you want, you can withdraw all money after maturity. However, if you do not need money, it can be extended for 5-5 years.
The benefit of tax exemption is available on this The EEE of PPF Income Tax falls in the category. That is, you get the benefit of tax exemption on the entire investment made in the scheme. Also, in this scheme, no tax is paid on the interest and entire amount of investment from investment in this scheme. The rate of interest on PPF investment varies every three months. The PPF account cannot be seized by any court or order at the time of debt or other liability.
Big fund will be easily ready If you invest 1 thousand rupees every month through this scheme, then you will get 3 lakh 18 thousand rupees after 15 years. On the other hand, if you invest 2 thousand rupees a month, then after 15 years you will get 6 lakh 37 thousand rupees. Learn here how much you will benefit by investing in it.
Who can open PPF account? Any person can open this account in a post office or bank in his name. Apart from this, an account can be opened by another person from the minor.
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