About Public Provident Fund (PPF)

📌 What is PPF (Public Provident Fund)? The Public Provident Fund (PPF) is a long-term, government-backed savings scheme in India that offers fixed returns, tax benefits, and capital protection. It has a lock-in period of 15 years and is ideal for investors looking for safe, tax-efficient wealth creation.

📌 Why Use a PPF Calculator? A PPF Calculator allows investors to estimate tax-free maturity amount, plan long-term savings, understand compound growth, and avoid manual calculation errors.

📌 How PPF Investment Works You can invest ₹500 to ₹1.5 lakh per year. Interest is compounded annually, interest rate is declared by the Government of India, investment qualifies for Section 80C, and maturity amount is fully tax-free.

📌 Example of PPF Calculation If you invest ₹1,00,000 per year for 15 years at 7.1% interest, total investment is ₹15,00,000 and maturity value is approximately ₹27,12,000.

PPF Calculator

*Results are estimates for educational purposes only. PPF interest rates are subject to change by the Government of India.

Why PPF is Popular Among Long-Term Investors

Public Provident Fund (PPF) is backed by the Government of India and offers tax-free returns with capital protection. Its long lock-in period encourages disciplined savings and makes it suitable for long-term financial goals such as retirement.

Tax Benefits of PPF

PPF investments qualify for tax deduction under Section 80C of the Income Tax Act. The interest earned and maturity amount are fully exempt from tax, making PPF one of the most tax-efficient investment options available.

Limitations of PPF

PPF has a long lock-in period and limited liquidity. Partial withdrawals are allowed only after a few years. Investors should ensure they do not rely on PPF for short-term needs.

Practical Example

As an example, a salaried individual contributing regularly to PPF for 15 years can use this calculator to estimate the maturity value while also understanding the long-term tax-free benefits associated with disciplined savings.

Frequently Asked Questions (PPF)

What is PPF?
Public Provident Fund (PPF) is a government-backed long-term savings scheme offering fixed returns and tax benefits.

Is PPF completely tax-free?
Yes. Contributions qualify for tax deduction under Section 80C, and both interest and maturity amount are exempt from tax.

What is the lock-in period for PPF?
PPF has a lock-in period of 15 years. Partial withdrawals are allowed after a few years under specific conditions.

Can NRIs invest in PPF?
NRIs cannot open new PPF accounts, but existing accounts opened while resident may continue until maturity.