Public Provident Fund (PPF) Calculator
Forecast 15-year PPF maturity returns, tax-free interest accrual, and 5-year block extensions under EEE tax status.
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Everything You Must Know About Public Provident Fund (PPF)
The Public Provident Fund (PPF) is a statutory central government savings scheme launched to mobilize small retail savings while offering lucrative compound returns paired with unrivaled tax advantages. Backed completely by sovereign guarantees, PPF carries zero credit default risk.
The Power of EEE (Exempt-Exempt-Exempt) Taxation
Very few financial instruments in India enjoy true EEE tax status:
- Exemption 1 (Investment): Contributions up to ₹1,50,000 annually qualify for deduction under Section 80C of the Income Tax Act (Old Regime).
- Exemption 2 (Accrual): Annual interest credited to your account is completely exempt from income tax and wealth tax.
- Exemption 3 (Withdrawal): The entire lump sum maturity corpus withdrawn after 15 years is 100% tax-free in your hands.
Golden Rule for PPF Deposits: The 5th of Every Month
PPF interest is calculated on the minimum balance between the close of the 5th day and the end of the calendar month. If you deposit funds on or after the 6th day, you lose out on interest for that entire month. Always automate your deposit on or before the 5th to maximize compound returns.
Frequently Asked Questions
Can I extend PPF beyond the 15-year lock-in?
Yes. Upon completing 15 financial years, you can extend your PPF account indefinitely in blocks of 5 years, with or without continuing fresh annual deposits.
Can a person open two PPF accounts?
No. Under Ministry of Finance rules, an individual can only open one PPF account in their own name. Opening a second account leads to forfeiture of interest on the second account.