Latest news with #Rs.1.5
Hans India
3 days ago
- Business
- Hans India
YSRCP observes 'Betrayal Day' with rally in Banaganapalle
The YSR Congress Party (YSRCP) marked June 4 as 'Betrayal Day' with a massive protest rally in Banaganapalle, led by former MLA Katasani Ramireddy on Wednesday. The rally began at the YSRCP office and proceeded to the Tahsildar's office, drawing large participation from party workers and leaders. The protest, in response to party chief Y.S. Jagan Mohan Reddy's statewide call, targeted the ruling TDP-led alliance, accusing it of backtracking on key promises, including the "Super Six", and burdening the public with Rs.1.5 lakh crore in debt within a year. Ramireddy criticized the government for scrapping welfare schemes like free bus travel for women and doorstep ration delivery, imposing BCJR taxes on small businesses, and misusing the NREGS scheme. A memorandum demanding immediate implementation of poll promises was submitted to the Tahsildar. ZP Chairman Errabothula Papi Reddy, youth wing leader Gundam Nageshwar Reddy, and other district leaders participated. 'YSRCP 2.0 is coming — no betrayal will be forgiven,' declared Ramireddy.
Indian Express
23-05-2025
- Business
- Indian Express
Slow and Steady: How Much of Your Money Belongs in PPF?
For investors seeking a long-term, low-risk investment that offers tax efficiency, the Public Provident Fund (PPF) is an ideal option. Popular for decades, PPF offers stable, tax-free returns, making it a good fit for a conservative portfolio, or even balancing your portfolio's risk. But, how much should you allocate to PPF? The answer to that demands a fair understanding of how the scheme is structured, its benefits, and its limitations. So, let's find out. The Public Provident Fund (PPF) scheme allows tax deductions of up to ₹1.5 lakh annually under Section 80C of the Income-tax Act. The returns earned on the investment are completely tax-free. However, it comes with a lock-in period of 15 years, during which full withdrawals are not permitted. Partial withdrawals are allowed under specific conditions, such as a medical emergency. The scheme is exclusively available only to Indian citizens and an eligible individual can open only one PPF account. With PPF, your principal, interest earned, and maturity proceeds are all exempt from tax. The minimum annual contribution required is ₹500, while the maximum is capped at ₹1.5 lakh. If you skip the minimum deposit in any year, the account becomes inactive and needs to be reactivated. The interest rate on PPF is reviewed quarterly and may change from time to time. At present, it offers an annual interest rate of 7.1%, compounded once a year. In terms of actual returns, the comparison between a PPF and a fixed deposit becomes quite stark. For instance, if a bank FD offers 7% interest, post-tax, your actual return is likely to be closer to 4.9%. In contrast, PPF offers 7.1% tax-free. That difference may look small, but it compounds significantly over time. So, if you are choosing purely based on post-tax returns, PPF wins in most scenarios, especially if you fall into a higher tax slab. But remember, PPF does have an annual investment cap of Rs.1.5 lakh. The real question is not whether to invest in PPF, but how much. If you are seeking tax-saving benefits under Sec 80C, analyse the investments or expenses you have already availed of under Sec 80C, and invest the remainder in PPF. For instance, you have already availed of Rs.1 lakh deduction out of the maximum Rs.1.5 lakh under Sec 80C with life insurance premiums, children's tuition fees, and principal repayments on home loans. Invest the remaining Rs.50,000 in PPF to ensure you have used up the maximum tax benefit Sec 80C has to offer. The strategy, essentially, is to avoid duplication. While PPF is a useful tax-saving tool, it isn't the only one. Utilise it to complement your broader financial strategy. As your responsibilities grow and risk tolerance reduces, your investment strategy should also shift towards safer options, without focusing on only one investment like PPF. Instead, treat it as a diversifying element in your portfolio to balance riskier assets like equity mutual funds. You can also pair it with other low-risk instruments offering better liquidity or shorter tenures. Most importantly, invest in a consistent and disciplined manner instead of leaning heavily on one instrument. PPF isn't just a tax saver, but also a steady wealth builder. With clear goals and patience, it quietly works in the background to support your long-term financial plan, without demanding much or adding weight to your financial plan. It is most effective when used as part of a broader financial strategy. Adhil Shetty is the CEO of
