PPF vs ELSS: In which scheme money will increase soon and will get more tax exemption? Know in detail the pros and cons of both

New Delhi. If you are a salaried person and your salary comes under the tax slab, then you can avoid paying tax by investing in a tax saving scheme. There are tax saving schemes like National Pension Scheme, Small Savings Schemes, Tax Saving FD, Public Provident Fund (PPF), Equity Linked Saving Scheme (ELSS) etc. Investment in PPF and ELSS is now increasing continuously.

The advantage of PPF and ELSS is that they not only get great returns, but also get tax exemption. Both the schemes offer good returns and also get tax exemption under section 80C. If you are also confused about investing in Public Provident Fund (PPF) and ELSS, then we clear your confusion. Today we are telling about the advantages and differences of these two schemes.

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risk first
Public Provident Fund is a scheme backed by the government. This is the reason that the money invested in it remains 100% safe. On the other hand, ELSS is an equity-linked investment scheme. There is market risk on investing in this. Money can also be drowned in this. Therefore, if we look at the risk, then investing in PPF is more appropriate.

Also Know Returns
The rate of interest on Public Provident Fund is fixed by the government. The rate of interest is fixed every quarter. At present, interest is being paid on PPF at the rate of 7.1% per annum. ELSS invests most of the money raised from investors in equity and equity-linked securities. Therefore, the returns of ELSS are market linked. Returns are not fixed in this. However, ELSS have been giving 12-14 per cent returns. So investing in ELSS is beneficial in terms of returns.

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input range
One can invest up to Rs 1.5 lakh in PPF in a single financial year or in a maximum of 12 installments. At the same time, 500 rupees can be deposited in it in a minimum year. Any amount of money can be invested in ELSS. ELSS is the right way to invest more money.

tax benefits
If you invest money in PPF, then you get tax benefits in three ways. You get the benefit of tax exemption on the money invested in it. There is no tax on the interest earned and maturity amount. On the other hand, Long Term Capital Gains (LTCG) tax at the rate of 10 per cent is liable to be paid if the profit earned on investment in ELSS exceeds Rs 1 lakh. However, tax exemption can be availed on investment of Rs 1.5 lakh made in this year. In this way, tax saving is more in PPF.

Tags: business news in hindi, Investment, Investment tips, mutual fund, Personal finance, PF account

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