Tax Savings
Max. Annual Deduction (Sec 80C)
₹0
Estimated Tax Saving @ 30% Slab (p.a.)
₹0
*Tax saving calculation assumes the investor falls in the 30% tax slab (plus applicable cess). Actual savings depend on your individual income tax slab. The maximum investment eligible for deduction under Sec 80C is ₹1,50,000 per financial year across all eligible instruments (including PPF, EPF, ELSS, etc.).
Key PPF Features & Benefits
The Public Provident Fund (PPF) is a popular long-term investment scheme backed by the Government of India, offering safety with attractive tax benefits.
- EEE Tax Status: PPF enjoys the Exempt-Exempt-Exempt status.
- Exempt (Contribution): Investments up to ₹1,50,000 per financial year are eligible for deduction under Section 80C of the Income Tax Act.
- Exempt (Interest): The interest earned annually is completely tax-free.
- Exempt (Maturity): The maturity amount (principal + accumulated interest) is fully tax-exempt.
- Investment Limits: Minimum annual investment is ₹500, and the maximum is ₹1,50,000 in a financial year. Investments can be made in lump sum or up to 12 installments.
- Interest Rate: Interest is compounded annually and paid on March 31st. The rate is set by the government quarterly (currently shown as the input value, but subject to change).
- Tenure & Extension: The initial lock-in period is 15 years. After maturity, the account can be extended indefinitely in blocks of 5 years, with or without further contributions. Tax benefits continue during the extension period.
- Loan Facility: A loan can be availed against the PPF balance from the 3rd to the 6th financial year of opening the account.
- Partial Withdrawal: Partial withdrawals are permissible from the 7th financial year onwards, subject to certain limits and conditions.
- Account Holding: PPF accounts can be opened at designated Post Offices and bank branches (Public Sector and major Private Banks).
- Protection from Attachment: The balance in a PPF account cannot be attached by any court order or decree for debt or liability recovery (except by the Income Tax department for tax dues).