PPF Calculator
Calculate your Public Provident Fund returns and plan your tax-saving investments
Understanding PPF Investment
Public Provident Fund (PPF) is a government-backed long-term savings scheme that offers guaranteed returns with tax benefits. It's one of the most popular tax-saving instruments under Section 80C of the Income Tax Act.
Key Features of PPF:
- Government-backed scheme with guaranteed returns
- Current interest rate: 7.1% p.a. (reviewed quarterly)
- 15-year lock-in period with partial withdrawal facility after 7 years
- Tax benefits under EEE (Exempt-Exempt-Exempt) category
- Minimum investment: ₹500/year, Maximum: ₹1,50,000/year
Tax Benefits:
- Investment: Tax deduction under Section 80C up to ₹1.5 lakh
- Interest Earned: Tax-free under Section 10(11)
- Maturity Amount: Completely tax-free
- Loan Facility: Available from 3rd financial year
- Partial Withdrawal: Allowed after 7th financial year
Example PPF Investment:
Yearly investment of ₹1,50,000 for 15 years at 7.1% interest rate:
- Total Investment: ₹22,50,000
- Maturity Amount: ₹41,23,750
- Total Interest Earned: ₹18,73,750
- Tax Saved (30% tax bracket): ₹6,75,000
Frequently Asked Questions
Can I extend my PPF account after 15 years?
Yes, you can extend your PPF account in blocks of 5 years indefinitely after the initial 15-year maturity period. You can continue making fresh contributions or keep the account active without contributions.
How is PPF interest calculated?
PPF interest is calculated on the minimum balance between the 5th and last day of each month. Interest is credited annually at the end of the financial year.
What happens to PPF account after death?
In case of the account holder's death, the PPF balance will be paid to the nominee or legal heir. The account cannot be continued by the nominee/legal heir.
Can I have multiple PPF accounts?
No, an individual can have only one PPF account in their name. However, you can open another account on behalf of a minor child.