Do you have a PPF account more than 6 years old? Do you struggling to save your tax under 80C? You can use your PPF account to save tax using a rare method. This can be used to save total tax under 80C or partial to complete any tax liability you still have declaring all other instruments.
Those who all are dealing with PPF are well aware, a PPF account holder can withdraw money after 6 years. This is one of the best advantage for us to save tax using PPF in a smarter way. Scenario: Suppose you have declared tax of Rs.70000 under 80C (after your company deducting PF amount of Rs. 30000) and you have invested only 40k till the end of the tax year. Now there is 30000 pending to invest and you don’t have money.This is the time to depend your 6 year old account. Go to the bank and withdraw 30000 from your PPF account and invest back to the account in the very next day. Now you are ready to show the full Rs. 70k proof as your 80C investments for the year.Use it if none of other method available because we are not sure how it will affect to you interest later. I will have a talk with concerned personal and will update this article soon on this part.Inform if you have any queries or doubt on this article.