Public Provident Fund: a Stable system of tax planning.
The only answer to the question of how to save income tax and those who are self-employed and self-employed is a single answer-Public Provident Fund. The Public Provident Fund Account (PPF) is a three-term long-term investment scheme with cash withdrawals, interest received and withdrawal of funds.
PFF, which is associated with the interest rate market for all three months as well as other small deposits, will now pay interest at a nominal interest rate of not exceeding 7.6%. Learning about the investment plan will help to make the ending of the tax deduction.
PUBLIC PROVIDED FUNDS DATA DURING the term of 15 years, the term of withdrawal can be withdrawn during the last financial year. Those who used the Public Provident Fund account for up to six years of income tax have been able to withdraw money using this facility for the seventh year and benefit from the tax hike.
Seven years will not have to make any other money to invest in tax concessions. Taxes not withdrawn due to tax withdrawal are not considered as revenue, but the recovered deposit will be eligible for tax concessions.
The withdrawal amounted to 50 percent of the balance sheet. At the end of the preceding financial year, the withdrawal amount is 50 percent. In the financial year 2011-12, the investment can be partially withdrawn in the 2017-18 financial year.
The amount that can be withdrawn by half the value of the balance sheet from the end of the 2013-14 financial year or the amount of the amount from the end of the 2016-17 financial year.
The withdrawal amount can be deposited in the account and can be a taxpayer for 2017-18. Taxes can be planned as well as those that can be repeated in the years to come. Those who have not made a key component of the public provident fund account in tax planning will start using this later this year and will be able to use this extra feature in the future.
There is also a need to avail loans at the time of completion of the financial year beginning with the account. The loan is entitled to 25% of the remaining amount, including interest on the second year after the loan year. The interest on loan will be above 2% of the interest rate paid on deposit when it comes to loan. Borrowing should be repaid within 36 months. Repay the loan for one or two months or more.
Reimbursement from the repayment amount will be paid to the account. Loans will not be repaid within 36 months and the rate of interest is 6% instead of 2%. The loan is only allowed until the end of the sixth financial year. This means that after this the partial withdrawal is partially withdrawn. In order to repay partially the amount will be deducted from the outstanding loan.
As a social security plan, the balance in the public provident account cannot be reduced to all other liabilities of the account holder. Courts have been barred from issuing judgments to seize existing liabilities from their PPF accounts. PPF account can be opened on Post Offices, nationalized banks and some private banks. 1.5 lakh per annum in the financial year. The accounts starting from post offices also have the ability to change the bank and vice versa.
Latest posts by Certicom Consulting (see all)
- Time, Place and Value of Supply for good services under GST - August 14, 2018
- GST Procedure - August 13, 2018
- Income Tax Department Portal – Login & Registration Guide - August 11, 2018