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Planning tax-saving investments?
PPF can help under Section 80C in the Old regime. Compare your tax outcome and other retirement options.
Open the ITR Calculator → Try the NPS CalculatorWhat is PPF?
The Public Provident Fund (PPF) is a government-backed long-term savings scheme with tax benefits, a 15-year lock-in and a government-declared interest rate. It is commonly used for conservative retirement and goal-based savings.
How this PPF calculator works
Enter your yearly deposit, annual interest rate and tenure. The calculator adds each year's deposit at the start of the year, applies annual compounding, and shows total invested versus interest earned. Figures are indicative only, not advice.
Key features of the PPF scheme
- Who can open one: any resident individual can open one PPF account in their own name, and a guardian can open one on behalf of a minor. NRIs cannot open a new PPF account.
- Deposit limits: a minimum of ₹500 and a maximum of ₹1.5 lakh per financial year, in up to 12 instalments or as a lump sum.
- Tenure: a 15-year lock-in from the end of the year the account is opened, extendable in blocks of 5 years.
- Interest: declared by the government every quarter (currently around 7.1% p.a.), compounded annually and credited at year-end.
- Guarantee: backed by the Government of India, so both principal and interest are completely safe.
PPF tax benefits — the EEE advantage
PPF enjoys the most favourable Exempt-Exempt-Exempt (EEE) tax status:
- Contribution: deposits qualify for a deduction of up to ₹1.5 lakh under Section 80C (available under the old regime).
- Interest: the annual interest is completely tax-free — it is not added to your income at all.
- Maturity: the entire corpus you withdraw at the end is tax-free.
This combination makes PPF one of the few genuinely tax-free debt instruments in India, which is why it remains popular for retirement and children's-education goals. Note that the 80C deduction is only useful if you choose the old tax regime.
Loans and partial withdrawals
PPF is a long-term product, but it isn't fully illiquid. You can take a loan against the balance between the 3rd and 6th year, and make partial withdrawals from the 7th year onward, subject to scheme limits. On maturity you can withdraw the full amount, extend the account with fresh contributions, or extend it without contributions and simply let it keep earning interest. Because of the long horizon, the "interest earned" portion in the calculator above often exceeds the total you deposited — a clear illustration of long-term compounding.
PPF vs EPF vs NPS
PPF is open to everyone and is entirely self-funded with a fixed, tax-free return. EPF is tied to salaried employment and includes an employer match — compare it with the EPF calculator. NPS is market-linked and can deliver higher long-run returns with an extra ₹50,000 deduction under Section 80CCD(1B) — see the NPS calculator. Many savers use PPF for the guaranteed, tax-free core of their portfolio and add EPF/NPS and equity SIPs for growth.
Frequently asked questions
How is PPF maturity calculated here?
The calculator assumes you deposit at the start of each year and the balance compounds annually at the entered PPF rate for the selected number of years.
What is the PPF lock-in period?
PPF has a 15-year lock-in. After maturity, it can generally be extended in blocks of 5 years, with or without fresh contributions, as per scheme rules.
What is the maximum yearly PPF deposit?
The usual maximum contribution eligible in a PPF account is ₹1.5 lakh per financial year. The government revises scheme rules and interest rates from time to time.
Is PPF interest taxable?
No. PPF enjoys EEE status — the contribution qualifies for Section 80C, the annual interest is tax-free, and the maturity amount is tax-free. It is one of very few fully tax-free debt instruments in India.
Can I withdraw money from PPF before 15 years?
Partial withdrawals are allowed from the 7th year onward, and a loan can be taken between the 3rd and 6th year, both subject to scheme limits. The full balance is available only at maturity.