Can I have both PF and PPF?
Typically, employees use a combination of EPF and PPF. But instead of investing in PPF, salaried people can increase their contribution to EPF (by opting for VPF). In the recent past, EPF has offered higher interest returns than PPF.
Can I convert EPF to PPF?
You can not directly transfer EPF amount to PPF. You could withdraw and invest but within the limit of Rs. 1 lac per year.
What is the lock in period for PPF?
15 years
While the lock-in period in PPF is 15 years, it provides liquidity in the form of loan and partial withdrawals. Tax benefits on investments, interest and maturity make the Public Provident Fund (PPF) a preferred tax-saving investment.
What is the lock-in period for PPF?
Which bank gives highest PPF interest rate?
State Bank of India (SBI)
State Bank of India (SBI), which is the largest bank in the country, offers the PPF scheme with a good interest rate. SBI has over 15,000 branches in India, therefore, getting access to the scheme is easy.
What if I invest more than 1.5 lakhs in PPF?
However, an earning individual can’t have more than one PPF account and one can’t invest more than Rs 1.5 lakh in one PPF account in a particular financial year. However, the overall income tax exemption under Section 80c on investments will continue to remain capped at Rs 1.5 lakh per annum.”
Can I withdraw PPF after 5 years?
Yes, you can withdraw money from your PPF account if you have completed 5 years of continuous contributions. For that, you need to obtain Form-C (PPF Withdrawal Form) from your respective bank, fill it and submit the same along with an application for withdrawal at the bank.
What is the new income tax slab for 2020-21?
Income tax slab rate applicable for New Tax regime – FY 2020-21.
| Income Tax Slab | New Regime Income Tax Slab Rates for FY 2020-21 (Applicable for All Individuals & HUF) |
|---|---|
| Rs 7.5 lakhs – Rs 10.00 Lakhs | 15% |
| Rs 10.00 lakhs – Rs. 12.50 Lakhs | 20% |
| Rs. 12.5 lakhs- Rs. 15.00 Lakhs | 25% |
| > Rs. 15 Lakhs | 30% |
How can I save tax on 2020-21?
Tips for Saving Tax in FY 2020-21
- Invest in Equity-Linked Saving Scheme (ELSS)
- Invest in the National Pension Scheme.
- Invest in Sukanya Samriddhi Yojna.
- Know When to Opt for the New Tax Regime.