I read in an article that interest in PPF computes monthly and interested amount would be taken as total balance of the account before 5th of the month. reply if anybody has concrete knowledge on this.
Hi, I am getting 3.4 lakhs of annual package, and i am planning to marry next year ... i have LIC of 5 Lakhs for 16years which i took last year, I also took NSC for 30000 last year. My question is which would be the better option NSC or PPF for coming Financial year for saving my tax as well as saving purpose, If there would be tax cutting after the maturity of NSC and PPF than which would be the better for me. I don't want invest my money in Public sectors like mutual fund or shares. I am stick towards Goverment sectors. Please suggest is there any better other option rather than NSC or PPF for tax saving as well as for saving purpose.
Hi, I feel ppf is like our savings for our retirement, not only an investment. My father when he retired the amount he got he could put it in a bank or the post office under MIS, still get returns @ 14% so the monthly expenses were met. I work in a private company, in the current trend even this option is ruled out as the PF will not suffice. So we need the PPF to supplement it. In the bank for 5% interest to get 10K per month we need to invest 24lakhs. Our PF, will be like 2000*12*30=720000 ( where 2000 is the amount per month ,2 months and assuming we work for 30 years. 2000 is a high end amount, I know it is less than that).
The article on PPF is good.But PPF should not be touched by government any more.Fostly there should be no difference between EPF and PPF interest rates.Secondly being for old age and retirement benefits persons above age of 50 if withdrawing funds from PPF should be treated under EEE scheme only.I can't understand this logic of exempting the investnebt and interst first and then tax it when person wants to use it. PPF is welfare and social welfare scheme and thus government should niot apply same yardsticks to it and NSC. Not only interst rates should be atleast 9% but should be always EEE. Government should fund losses through Union Buidget welfare allocation.Except for public servants, there is hardlt any soial security cover for Indian citizens despite what kind of job they do. This is bad.A typical citizen say working as middle level executive in a SME not only gets much lesser salary and perks than a civil servant but also has no beenfits like opension,medical reimbursement,housing loans,public owned housing on subsidised basis. Is this country working for care of public servants only who are otherwise supposed to serve people.They are most beneficiaries of welfare schemes
Dear Sir/Madam, Its very painful for salaried class when Finance Ministry has made provisions to tax employees for HR Perqusite at the rate 20% where population exceeds 4 lac and 15% where city populations less then 4 lacs.
As in the category for calculation it taxed on Basic pay + any pers pay/APP + DA.which is on to higher side. In the previous budget viz 2004-05 was 10% and 15%.
Can Finance Minister see the genuine grevances of employees !
Hi, The PPF is such a instrument which is darling of the Privte Sector employee and so it should not be taxed. Beacuse private sector employee had no such plan like Pension, Gratuity, Funds as compared to Govt employee.
I thought interest on PPF investment was computed (and compounded) on monthly average balances. This article says it is compounded annually. Any clarifications?
very nice and clearly explained article.. We hope once budget changes are known then we can get an even better article which ca tell what has happened using the same clear terms.
