Why PPF account is important for early in professional life

I am writing this because I felt , I dint got this advice when i was new to professional life

There are many reason why PPF account is considered best with very good return. 

When income of an professional reach to a level where he has to pay tax , then he start thinking about where to invest the money so that he can get the Tax benefit under section 80C.

What in general a fresher does 

1. Buy NSC (National Saving Certificate) - return on maturity Taxable

2. Buy ELSS mutual fund - return on maturity Taxable and risky being invested in market

3. Buy ULIP (Unit linked investment plan) - very expensive and risky because invested in market 

4. Buy LIC  :-return is very less , most of money goes for motility coverage 

5. Buy Fixed Deposit 5 year locking - return on maturity Taxable 

Both above these have disadvantages of as  NSC being as taxable on maturity and ELSS is being risky on market condition and so on.... 

Advice to  open PPF account is least available to freshers in the industry.

Advantages of PPF:

1. This is account with government so it is safe investment 

2. Current rate of interest is 8.5

3. One can invest 500Rs to 1L Rs  annually , minimum 500 to keep it active 

4. Money is saved for 15 years

5. Loan can be avail on deposit balance

6. Most important is return on maturity is tax free , that when one is in highest tax bracket 

7. Investor can deposit 12 times in a year , so from beginning of financial year every month  money can be deposited to reduce stress in March.

Let us take an simple example , an individual invest 1L every year in PPF account  for 15 years, let us assume she falls in 20% Tax bracket  on an average for 15 years .  

a. Total sum                                                                  15,00,000

b. Saving on tax  80C (20%)                                           3,00,000

c. Total amount earn on Maturity (@ 8.5%)                   30,90,109

d. Tax on maturity saved             (@20%)                   6,00,000

Total saving on maturity is 6,00,000. which is directly 20% more than any instrument. 

Investor should check every year with company account for the PF contribution so ideally she should invest in  "PPF = 1L - PF contribution" which will cover all 80C requirement.

Note : After later stage of professional life where PF contribution may cover entire 1L then PPF may not give the 80C benifit but still maturity amount is tax free , so it make more sense to open PPF account early and save more.

               

How to open PPF account at SBI

It is very simple to open PPF account at SBI . You need to carry zerox of following documents

1.  Identity proof (any of PAN card ,Driving licence , election id etc ...)

2.  PAN card is must

3.  Address proof - any of bank statement , passport ,credit card bill , landline bill etc

along with original for verification in case bank officer ask for it and 2 passport size photograph , you need to fill three forms 

1.  Application form

2.  Nomination form 

3.  Chalan form , you can give cash , cheque or withdrawal form , if already have an account with SBI.

once filling formality is over , you have to handover the form to the officer they will check original and give you receipt slip and you need to visit SBI office next day to collect SBI PPF passbook . 

How to apply for Ration card bangalore

Recently I received my ration card and very happy to capture this info as how easy it is to get the 

ration card in Bangalore now. You have to just apply online , fill all the data about you and family with address and RR number electricity bill (Must). 

Step 1:

click on http://ahara.kar.nic.in/ 

then click on below link , only sometime in a year department will open this facility , you should wait for that once open then you can apply. Keep the acknowledged copy with you, and take the print out of application form as well. 

Click here to apply for Ration Card (ಹೊಸ ಪಡಿತರ ಚೀಟಿಗಾಗಿ ಆರ್ಜಿ) - New or Using Surrender Certificate

Step 2:

After applying for the ration card you will receive a message from "TD-KA-FCS"

for capturing biometric data at nearby biometric centre. You can search your nearby place for same. I am living in Sahakar Nagar, so found it behind HDFC band, 80 feet road. There is another near kodigehalli police station. There you have to go with all the family members you want on the ration card and show them SMS received, they will capture the thumb impression and photo for each family member.

They will give the print out, official charges are 20/ Rupees.

Wait for further SMS from "TD-KA-FCS". 

Step 3:  

Once you receive message from "TD-KA-FCS" for submitting the application form (printout in step 1 or anytime from website you can retrieve it using application no and date of submitting) with all the zerox of identity proof (pan card election id card etc )  ,address proof and zerox of recent electricity bill same RR number bill. You should submit these to subjudice food office. For north Bangalore it is Yelhanka (above Sherawati hotel new town) and Bangalore North IRA, it is at Vyalikaval near Sadashivnagar.   Keep the receipt.

Wait for further SMS.

Step 4:

Once you get SMS for collection of Ration Card , you need to go same office for collection again , You have to pay 20 rupees for collecting Ration card. Verify all details in it, if anything wrong you have to back to step 2 to rectify the issues. 

4G : LTE network and device support

Before buying 4G tablet/Handset , check frequency band supported by device and respective N/W planning to use with. Becayse 4G device are not designed on “one size fit all concept “.They may not work with all 4G LTE N/W.  Because worldwide different spectrum is used to deploy LTE.

They are specifically targeted for specific country and network.

Sierra 320U  data card   does not have support for 2300MHz frequency  band and is not compatible with  Airtel 4G LTE N/W.

Airtel had launched 4G LTE on 2300MHz frequency.

For US market also Sierra has launched another product 313U since  AT&T and Verizon has LTE deployment on 700 MHz.