June 12, 2023

Tax benefits of the Public Provident Fund (PPF) U/s 80C with Automatic Income Tax Calculator All in One for the Non-Govt Employees for the F.Y.2023-24 and A.Y.2024-25 in Excel

 A tax benefit of the Public Provident Fund is popular for a Maximum number of individuals who want

 to earn high but stable returns. Saving the principal amount properly is the main objective of

 individuals who open a PPF account.

 

PPF



 

Importance of PPF Account

 

A mutual fund scheme is ideal for low-risk individuals. This plan provides a guaranteed income to meet the financial needs of people in India as mandated by the government. Moreover, the money deposited in the PPF account is also not linked to the market.

 

Investors can also opt for a government pension plan to diversify their financial and investment portfolios. During downturns in the business cycle, PPF accounts can provide steady annual returns on investments.

Features of PPF Account

 

Income Tax Relief U/s 80C Maximum Rs.1.5 Lakh

The risk profile offers guaranteed, risk-free returns

The minimum investment amount is Rs.50,000

The maximum investment amount is 1.5 lakh  per year.

Tenure 15 years

 

The salient features of the Public Endowment Fund Scheme can be outlined as follows:

Owning an investment

 

The PPF account has a lock-in period of 15 years, before which the money cannot be fully withdrawn. The investor can, if necessary, extend this mandate for 5 years after the expiry of the lock-in period.

You may also like- Automatic Income Tax Form 16 Part A&B which can prepare at a time 50 Employees Form 16 Part A&B in Excel for the Financial Year 2022-23 & Assessment Year 2023-24

Principal amount

 

A minimum of Rupees Five Hundred and a maximum of Rupees One Lakh and Fifty Thousand can be deposited in a provident fund scheme every year. This investment can be in cash or in installments. However, an individual is entitled to only 12 annual contributions in his PPF account. Every Year must be active by the deposit to your account and activating the account

 

Selection criteria

 

Resident Indian citizens are eligible to open a PPF account in their name. Minors can also have mutual fund accounts in their names if they are managed by their parents.

 

How to open a PPF account?

 

Offline and online procedures are available if the individual meets the required parameters specified in the eligibility criteria. Online activation of PPF can be done by visiting the bank portal or post office of your choice.

 

The following documents are required to be submitted while activating the Public Fund Account –

 

KYC documents, documents proving the identity of an individual such as Aadhaar, voter registration, driving license, etc.

Plate

Proof of residential address

Candidate declaration form

Passport size photograph

 

PPF is tax benefits

 

The income tax exemption applies to the principal amount deposited in the PPF account. The full value of the investment can be claimed tax-free under Section 80C of the Income Tax Act, 1961.

 

However, it should be kept in mind that the general principle that can be invested in a financial year is Rs. 1.5 Lakh.

You may also like- Automatic Income Tax Form 16 Part B which can prepare at a time 50 Employees Form 16 Part B in Excel for the Financial Year 2022-23 & Assessment Year 2023-24

 

 

Withdrawal

 

If a person wants to withdraw money from his PPF account, there are a few points he needs to follow.

 

A mandatory 15-year lock-in is included in the principal amount invested in these plans. Partial withdrawals are possible in case of emergencies related to a specific use. However, this amount can be withdrawn only after 5 years of account activation. Up to 50% of the total balance can be withdrawn in one transaction every financial year after the 4th year.

 

Investors should note that money deposited in a PPF account cannot be withdrawn before maturity. Individuals looking for long-term investment options that provide stable income can easily opt for this government support.

You may also like- Automatic Income Tax Form 16 Part A&B which can prepare at a time 100 Employees Form 16 Part A&B in Excel for the Financial Year 2022-23 & Assessment Year 2023-24

 

 

Procedure for receiving PPF

 

If you want to withdraw some or all of your money from your PPF account, you can do so.

Step 1: Fill out the application form (Form C) with the required information.

Step 2: An Application Submit to the related Bank Branch or Post Office

 

What is the C Form?

 

Chapter 1

This is the comment section where you have to submit your PPF account number as well as the amount you want to withdraw. Along with this, you have to indicate how many years have passed since the account was opened.

 

Chapter 2

It is about office usage and includes the following information:

Date of opening of PPF account.

The total balance in the PPF account.

Previously requested date

Given

The total amount in the account.

Amount of money allowed to be withdrawn.

Signature and date of a responsible person - usually service manager.

 

Chapter 3

Requests information about the bank to which the money will be directly credited or the bank to which the check or draft is deposited.

 

A copy of the PPF passport should also be enclosed with this application.

 

Download Excel All in One Automated Income Tax Preparation Software for Non-Government (Private) Employees for Financial Year 2023-24 and Assessment Year 2024-25 U/s 115BAC

 

Tax benefits of the Public Provident Fund (PPF) U/s 80C

Tax benefits of the Public Provident Fund (PPF) U/s 80C

Tax benefits of the Public Provident Fund (PPF) U/s 80C

Features of this Excel utility:-

 

1) This Excel utility perfectly prepares your income tax according to your U/s 115BAC option.

 

2) This Excel utility has a completely revamped Income Tax section as per Budget 2023

 

3) Computerized Income Tax Form 12 BA

 

4) Automatic computation Income Tax Exemption rented house U/s 10(13A).

 

5) Individual salary structure according to government and private group salary model

 

6) Individual Pay Sheet

 

7) Individual tax datasheet

 

8) Automatic Income Tax Form 16 Part A&B revised for the financial year 2023-24

 

9) Automatic Income Tax Form 16 Part B revised for the financial year 2023-24