“Creating investments, growing the economy and creating jobs is what this government wants to do”
- Peter Gutevein
Government scheme
Public Provident Funds (PPF)
Public Provident Funds was introduced in India long time back in 1968, PPF is one of the most attractive investment scheme as the returns earned from PPF is not taxable and you also get tax benefits. This is a long term investment where you have required a PPF account and you have to deposit certain amount of money every month. For example you are giving 5000 rupees every month so in a year it will be 60,000 and in 15 years with same deposit every month it will be around 9,00,000 with 7.1% returns on maturity you will receive around 16,27,284 rupees which is 7,27,284 rupees interest.
Senior citizen saving scheme
In this scheme as it goes by the name it is especially for senior citizen and the interest here can be receive quarterly March- June - September in this policy the interest is higher than PPF which is 7.4% returns
Government bonds
Government bonds in simple term is a dept based investment, Where you give money to government in returns of a rate of interest. Government uses this money to make infrastructure and spend it on new project so it's a win win for both government and the investor.
Government Gold bonds
Sovereign gold bond is a government scheme where you buy by gram price. This is a substitute of holding a physical gold, In India gold investment is seen as a good investment but the advantage of buying Gold bond it is that you will have no tension of where to keep the physical gold, and also buying it online you get 50 rupees discount per gram. But the drawback is that in this bond you are not going to get appreciation you will receive a fixed return which is of 2.5% annually, which is why this is called gold bond. The interest is taxable.
Another is the capital gains Maturity period is of 8 year, you get the exit option on 5th year. Now assuming that you bought at 4000 and sold it at 6000 the increase is of 2000 in that capital gain there will be 0 tax you will have to pay only if you are holding till maturity period. If someone is in urgent need of money and want to sell it before 5th year then those gold bonds are going to be tradable on Stock exchange, But if you sell it there and get a capital gain then that is taxable.
Comments