Smart Investors in India are already making moves to grow their money via deposit PPF before the clock hits April 5. The PPF is not just a safe and reliable savings scheme but it is also beneficial in maximizing interest earnings and saving taxes. Let’s understand all about the benefits of Deposit PPF Before 5 April and Earn More Interest.
Want to Maximize PPF Returns? Don’t Miss This April 5 Deadline
Most people think it doesn’t matter when you deposit your PPF. But it really does. Because, if you deposit PPF on or before April 5, you start earning interest from April itself. However, If you deposit after April 5, you lose one full month of interest for that year. Let’s understand through this example.
For instance, for a full ₹1.5 lakh deposit, this could mean losing ₹890 or more in interest for the year — and over 15 years, this small timing difference can compound into thousands of rupees in lost income.
Benefits of Depositing PPF in India
Good Interest with Early Deposit
Depositing PPF early in the financial year earns more interest for longer.
Also , Maximum interest is earned if the full ₹1.5 lakh is deposited before April 5.
Tax Free Returns
In India, investing in PPF is considered as exemption from taxes. That means:
- Investment: Tax deduction available under Section 80C.
- Interest earned: Tax-free.
- Maturity amount: Tax-free.
Easier way to claim Section 80C benefit
Investing in PPF is considered as one of the safest ways to claim the full Section 80C benefit and you can do so during your income tax return filing.
Loan and Withdrawal Options are flexible
- You can take a loan against your PPF balance after the 2nd year and up to the 6th year.
- Starting from the 7th year of depositing PPF, you can withdraw a part of your PPF money and you do not need to wait for full maturity.
- After 15 full years, your PPF account matures and you can withdraw the entire balance.
Conclusion
The timing matters a lot in investing. A simple decision to deposit PPF before April 5 each year can lead to higher returns, tax savings, and long-term financial security. It’s one of the smartest, safest, and most tax-efficient ways to grow your money in India. If you would like to know more about it or ITR Filing, feel free to contact our experts at 8881-069-069.
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