PPF Calculator in India
Calculate your Public Provident Fund returns with tax benefits, partial withdrawal options, and extension scenarios.
Monthly equivalent: ₹12,500
PPF rate is set by Government of India quarterly
PPF Key Features
- • 15-year lock-in period (mandatory)
- • EEE tax status (Exempt-Exempt-Exempt)
- • Partial withdrawal from 7th year
- • Loan facility from 3rd to 6th year
- • Government guaranteed returns
Government Guaranteed
Backed by Government of India with zero risk to principal
Triple Tax Exemption
Investment, interest, and maturity all are tax-free (EEE)
Competitive Returns
Currently offering 7.1% annual returns with compounding
When to Choose PPF in India
PPF is Ideal For:
Conservative Investors
Those who prioritize capital safety over high returns
Tax Savers
High tax bracket individuals seeking Section 80C benefits
Long-term Planners
Those comfortable with 15-year lock-in for retirement planning
Family Financial Security
Parents planning for children's education or marriage
Consider Alternatives When:
Seeking Higher Returns
Consider ELSS or equity SIPs for potentially higher returns
Need Liquidity
If you might need funds before 15 years, consider liquid funds
Young Investors
Young professionals might benefit more from equity exposure
Inflation Concerns
Fixed returns may not beat inflation in the long run
PPF vs Other Tax-Saving Investments
| Aspect | PPF | ELSS | NSC | Tax Saver FD |
|---|---|---|---|---|
| Lock-in Period | 15 years | 3 years | 5 years | 5 years |
| Expected Returns | 7.1% (guaranteed) | 10-15% (market-linked) | 6.8% (guaranteed) | 6-7% (guaranteed) |
| Risk Level | Zero risk | High (market risk) | Zero risk | Very low risk |
| Tax on Maturity | Tax-free (EEE) | 10% LTCG above ₹1L | Taxable as income | Taxable as income |
| Best For | Long-term, risk-averse savers | Growth-oriented investors | Conservative, medium-term | Ultra-conservative savers |
PPF Tax Implications
Tax Benefits (EEE Status)
- Investment: Deduction up to ₹1.5L under Section 80C
- Interest: Annual interest is completely tax-free
- Maturity: Entire maturity amount is tax-free
- Withdrawal: Partial withdrawals are also tax-free
Important Tax Considerations
- PPF investment counts towards ₹1.5L limit of Section 80C
- No TDS is deducted on PPF interest or maturity
- PPF is not subject to wealth tax
- Loan against PPF is taxable if not repaid
Quick Decision Guide: PPF vs Alternatives
| Your Profile | Choose PPF if you... | Consider ELSS if you... |
|---|---|---|
| Age 25-35 | Want guaranteed returns for retirement | Can take risk for higher wealth creation |
| Age 35-45 | Need stable returns for children's future | Want to maximize retirement corpus |
| Age 45+ | Prioritize capital safety over growth | Still have 10+ years for retirement |
Loan Eligibility & Terms
- Availability: From 3rd to 6th year of account
- Maximum Amount: 25% of balance at end of 2nd preceding year
- Interest Rate: PPF rate + 1% (Currently 8.1%)
- Repayment: Must be repaid within 36 months
Important Considerations
- Loan amount reduces your PPF balance temporarily
- Interest earned on loan amount stops during loan period
- If not repaid, loan becomes taxable income
- No processing fees or prepayment charges
Where to Open
- • Nationalized Banks (SBI, PNB, BOI, etc.)
- • Private Banks (ICICI, HDFC, Axis, etc.)
- • Post Offices
- • Authorized Private Banks
- • Online through bank websites
Required Documents
- • PAN Card (Mandatory)
- • Aadhaar Card
- • Address Proof
- • Passport-size photographs
- • PPF Account Opening Form
- • Initial deposit (Min ₹500)
Eligibility Criteria
- • Indian Resident individuals
- • Minor children (through guardian)
- • One account per person
- • Age: No minimum or maximum limit
- • NRIs cannot open new accounts
- • HUF/Companies not eligible
PPF for Children
Opening: Parents/guardians can open PPF for minor children
Investment Limit: Combined limit of ₹1.5L for parent and child
Maturity: Child gets control after turning 18
Benefits: Early start for long-term wealth creation
Investment Rules
- Annual Limit: Minimum ₹500, Maximum ₹1,50,000
- Investment Frequency: Can invest multiple times in a year
- Missed Investment: Account becomes dormant if no investment for a year
- Revival: Dormant accounts can be revived with penalty of ₹50/year
Withdrawal Rules
- Lock-in: 15 years mandatory lock-in period
- Partial Withdrawal: From 7th year, up to 50% of 4th preceding year balance
- Extension: Can extend in 5-year blocks after 15 years
- Premature Closure: Only allowed after 5 years with reduced interest
Important Considerations
Multiple Accounts: Only one PPF account allowed per person
Nomination: Nomination facility available and recommended
Transfer: Account can be transferred from one bank/post office to another
Interest Calculation: Interest calculated on lowest balance between 5th and last day of month
PPF Calculator FAQs
Everything you need to know about personal loans
Need More Help?
Financial planning requires careful consideration of various factors. Consider consulting with a financial advisor for personalized advice based on your specific situation.
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