Government Schemes: Managing personal finance is integral to achieving long term growth and financial stability. In order to encourage citizens to save and invest, the Government of India has designed various effective schemes that assist in securing a better financial future. Let’s learn about these schemes and the benefits they offer in achieving one’s financial goals.
Government Schemes: Public Provident Fund (PPF)
PPF scheme is a long term investment that is not taxable under Income Tax. It offers an attractive rate of interest and return on investments. It is considered as a risk-less investment opportunity.
Features of a PPF Account:
- Eligibility: All Indian citizens, including minors (through guardians).
- Investment Limit: Minimum limit of Rs. 500 and with a maximum limit of INR 1.5 lakhs annually.
- Interest Rate: 7.1%
- Tenure: Typically, PPF has a minimum tenure or lock-in period of 15 years which can be extended in blocks consisting of 5 years, post maturity.
- After a tenure of 7 years, partial withdrawals can be made after fulfilling certain criteria.
- Tax Benefits: Annual deposits made into a PPF account can be claimed under section 80C as deduction, maximum upto INR 1.5 lakhs per year (total deduction u/s 80C). As per the provisions of Section 80C of the Income Tax, 1961 the PPF interest and maturity amount is tax- free.
National Pension Systems (NPS)
Government Schemes: The National Pension Systems regulated by Pension Fund Regulatory and Development Authority (PFRDA) is a voluntary pension scheme applicable to all Indian citizens whose objective is to provide a regular source of income to citizens post retirement.
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Features of National Pension Systems:
- Eligibility: Indian citizens including residents and non residents (aged between 18 to 70 years)
- Investment Options: Tier I & Tier II of retirement and voluntary options respectively. Tier II account requires an active Tier I account.
- Investment Limit: For Tier 1: minimum INR 500 to open the account, minimum INR 1000 contribution per year. For Tier 2: minimum INR 250 to open the account, no restriction on minimum contribution per year.
- Tenure: One can contribute to the age of 60 at least and maximum to the age of 75 years.
- Benefits: Benefits to the contribution depends on entry age, opted annuity details, opted expected rate on investment and contribution made.
- Withdrawal: Withdrawal is subjected to withdrawal terms and conditions i.e., if the withdrawal is a partial withdrawal, premature exit, normal exit or because of the unfortunate death of subscriber.
- Economic Value: NPS is a cost-effective investment.
- Tax Benefits– It offers a wide range of tax benefits to salaried and self-employed individuals including an additional deduction of INR 50,000 under section 80CCD (1B) for Tier 1.
Government Schemes: Sukanya Samriddhi Yojana (SSY)
Government Schemes: Sukanya Samriddhi Yojana is a government saving scheme for the parents of girl children, enabling them to build an education fund for their girl child.
Features of Sukanya Samriddhi Yojana:
- Eligibility: Girl child till she attains the age of 10 years.
- Investment Limit: Minimum deposit INR 250 and maximum deposit INR 1.5 lakh in a financial year.
- Interest Rate: The current interest rate is 8.2% upto 30th September 2024 which is compounded annually.
- Tenure: The account can be opened in the name of a girl child below the age of 10, and shall mature on completion of 21 years.
- The time period of maturity of the scheme is after 21 years.
- Benefit: Higher interest rate which is compounded annually.
- Tax Benefits: Contributions to Sukanya Samriddhi Yojana (SSY) qualify for tax deduction under Section 80C, upto INR 1.5 lakhs per year, maximum. The compounded interest earned is tax-free, under Section 10 of the Income Tax Act.
Atal Pension Yojana (APY)
Government Schemes: This is one of the renowned retirement pension schemes for those who are working in the unorganised sector. This scheme enables them to deposit a fixed amount each month and have a guaranteed pension after retirement. This scheme was launched on 9th May 2015 and implemented on 1st June 2015.
Government Schemes: Features of Atal Pension Yojana (APY)
- Eligibility: Citizens of age group ranging from 18 to 40 years of age.
- Investment Limit: Investment amount varies on the entry age and the benefit opted. Monthly, quarterly, or semi yearly investments are also accepted.
- Tenure: Investment is done till the subscriber attains the age of 60.
- Benefit: A guaranteed pension per month at the age of 60 ranging from INR 1000 to INR 5000. The amount of pension allocated depends on the contribution done by the subscriber.
- In case of death of the subscriber after the age of 60, the same pension will be allocated to the spouse afterwards. And in case of death of both, the nominee will get the pension wealth accumulated till the age of 60.
- In case of the death of the subscriber before the age of 60, spouse of the subscriber will have the option to contribute to scheme till the original subscriber would have attained the age of 60 and avail the benefits or take away the entire corpus in her name or of the nominees.
- Tax Benefits: Only the pension income is considered as a part of taxable income that too with a marginal rate of tax, applicable to the subscriber under section 80 CCD (1B) for Tier 1. Tax benefits are the same as the NPS Scheme.
Pradhan Mantri Jan Dhan Yojana (PMJDY)
Government Schemes: The Pradhan Mantri Jan Dhan Yojana is a financial program announced by the Government of India on 15th August 2014 for the Indian citizens. It aims to grant access to affordable financial services like savings bank accounts, remittances, insurances etc.
Government Schemes: Features of Pradhan Mantri Jan Dhan Yojana
- Eligibility: Indian citizens including minors (10 years and above)
- Zero Balance Account: Individuals can open savings bank accounts without any mandatory opening balance. Cheque book and debit card facilities are also there.
- Overdraft facility: Under this scheme, an overdraft facility of Rs. 5,000 can be availed by eligible account holders.
- Rupay Debit card is provided to PMJDY holders along with an inbuilt accidental insurance cover of INR 1 Lakh.
The Best Scheme To Invest In This Lifetime
The sole reason for being granted a human birth is to attain salvation. Salvation can be attained only by following the right way of worship as mentioned in our holy scriptures and imparted by a Complete Saint (Tatvdarshi Sant). Kabir Saheb has stated:
Manush janam paye kar jo nahi rate Hari Naam |
Jaise kuua jal bina fir banwaya kya kaam ||
Holy scriptures of various religions, including the Holy Vedas, Holy Geeta ji, Holy Quran Sharif, Holy Bible, all contain uncontested evidence of Kabir Saheb being the one Supreme God. One can recognise this truth by watching the divine spiritual discourses of Jagatguru Tatvdarshi Sant Rampal Ji Maharaj. This world is full of uncertainty where anything can happen anytime, ending our precious human life without even the awareness of its true purpose. If we do not recognise and worship the real God, Almighty Kabir, then we will be left with no protection against obstacles and our human life will be wasted solely in material pursuits.
Sant Rampal Ji Maharaj is the only Complete Saint in this world and provides the true method of worship as per our sacred ancient scriptures. For more information visit: www.jagatgururampalji.org or YouTube channel: Sant Rampal Ji Maharaj
