Here is a simple PPF Calculator that you can use to calculate your PPF amount. You can check your accumulated money for 15 years of investment. Just enter the yearly deposit amount in the PPF calculator below and it calculates your interest/balance for the next 15 financial years. If you need, you may change the rate of interest in the PPF calculator below.
The current PPF interest rate is 8 %.
PPF stands for Public Provident Fund. It is a saving scheme with tax incentives from the Government of India. It was introduced by the National Savings Institute of the Ministry of Finance in 1968.
The aim of the scheme is to mobilize small savings of Indians by offering an investment with reasonable returns along with income tax benefits. The scheme is backed by the Central Government. Money in the PPF account cannot be attached under any order or decree of court except the tax officials can attach the same for recovering tax dues.
Eligibility for PPF
All Residents of India can open the PPF account and are eligible for tax-free returns. Once opened if a resident Indian becomes nonresident, he can continue to operate his PPF account. NRI’s cannot open a PPF account.
How to open PPF account?
You can open the PPF account with the following process.
- A PPF account can be easily opened in a designated post office or a commercial bank branch like SBI
- Give your KYC docs like Id and address proof
- You can open the PPF account with a minimum amount of Rs 500 to a maximum of Rs 1.5 Lacs
- Only one PPF account can be opened by an individual in his name
- To see how to open PPF account in SBI, click here.
Features of PPF
- The attractive interest rate of 8% backed by Govt of India
- Returns fully exempted from Income Tax under section 80C
- Good long-term investments of 15 years
- Deposit Amount as low as Rs.500 and maximum Rs.1,50,000 in one financial year
- Deposits can be done in a maximum of 12 transactions
- Partial withdrawal facility can be availed from 7th financial year onwards
- The account can be extended in a block period of 5 years after maturity
Here is an interesting post on EPF that you might be interested to read.
Duration of PPF
The original duration is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.
PPF maturity options
Subscriber has 3 options once the maturity period is over.
- Complete withdrawal.
- Extend the PPF account with no contribution – PPF account can be extended after the completion of 15 years, the subscriber doesn’t need to put any amount after the maturity. This is the default option meaning if the subscriber doesn’t take any action within one year of his PPF account maturity this option activates automatically. Any amount can be withdrawn from the PPF account if the option of extension with no contribution is chosen. The only restriction is only one withdrawal is permitted in a financial year. The rest of the amount keeps earning interest.
- Extend the PPF account with contribution – With this option subscriber can put money in his PPF account after extension. If a subscriber wants to choose this option then he needs to submit Form H in the bank where he is having a PPF account within one year from the date of maturity (before the completion of 16 yrs in PPF). With this option, the subscriber can only withdraw a maximum 60% of his PPF amount (amount which was there in the PPF account at the beginning of the extended period) within the entire 5 yrs block. Every year only a single withdrawal is permitted.
Loan on PPF
The first loan can be availed on the PPF amount from 3rd financial year up to 5th financial year. The rate of interest charged on loan taken by you on your PPF account on or after 01.12.2011 shall be 2% more than the prevailing interest on PPF.
Up to a maximum of 25 percent of the balance at the end of the 2nd immediately preceding year would be allowed as loan. Such withdrawals are to be repaid within 36 months.
A second loan could be availed as long as you are within the 3rd and before the 6th year, and only if the first one is fully repaid. Also note that once you become eligible for withdrawals, no loans would be permitted. Inactive accounts or discontinued accounts are not eligible for the loan.
PPF Tax exemptions
- Your PPF account falls under the EEE (Exempt, Exempt and Exempt) tax category. Your annual contribution to PPF comes tax deductions under Section 80C of income tax. The tax concession is capped at Rs. 150,000 of your total income in a financial year.
- Interest earned on PPF account and maturity proceeds is tax exempted too.