PPF  Calculator

Public Provident Fund (PPF):

The Public Provident Fund (PPF) is a long-term savings instrument offered by the Indian government under the PPF Act, 1968. It is a type of saving-cum-investment instrument, designed to encourage citizens to save for their future. The PPF offers tax benefits under Section 80C of the Income Tax Act and is exempted from tax under Section 10(12) of the IT Act.

Key features of PPF:

1. Long-term investment: The PPF allows for a long-term investment of up to 15 years, with an option to extend it in 5-year blocks.

2. Fixed interest rate: The PPF offers a fixed interest rate of 7.1% per annum, which is compounded annually.

3. Tax benefits: The PPF offers tax benefits under Section 80C of the IT Act and is exempted from tax under Section 10(12) of the IT Act.

4. Minimum and maximum deposit: The minimum annual deposit is Rs. 500, while the maximum deposit is Rs. 1 lakh.

5. Partial withdrawal: A partial withdrawal of up to 25% of the deposit can be made after 5 years.

6. No income tax: The interest earned on the PPF is tax-free, and the principal amount is also exempt from taxation.

7. Death and maturity: In case of the subscriber's death, the fund can be transferred to the nominee's name. On maturity, the subscriber can withdraw the accumulated amount.

Benefits of PPF:

1. Long-term financial planning: The PPF helps individuals plan for their long-term financial goals.

2. Tax-free returns: The PPF offers tax-free returns, making it an attractive option for individuals seeking a tax-efficient investment.

3. Risk-free investment: The PPF is backed by the Indian government, making it a low-risk investment option.

4. Liquidity: The PPF offers liquidity through partial withdrawal after 5 years.

Who can invest in PPF?

1. Resident Indians: Resident Indians can invest in the PPF.

2. Non-resident Indians: Non-resident Indians can also invest in the PPF.

3. Minors: A guardian can invest in the PPF on behalf of a minor.

Eligibility criteria:

1. Age: The subscriber must be a resident Indian with a valid Aadhaar card.

2. Identity proof: The subscriber must provide identity proof, such as a passport, driving license, or PAN card.

3. Address proof: The subscriber must provide address proof, such as a ration card, electric bill, or telephone bill.

Overall, the PPF is a popular savings instrument in India, offering tax benefits, a long-term perspective, and a relatively low-risk investment option.