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PPF Calculator: Monthly savings of ₹12,500 can generate around Rs 41 lakh in 15 years. Know how

PPF Calculator: PPF account is a risk-free investment and tax-saving tool backed by the central government. If you invest Rs 12,500 every month in the Public Provident Fund, you can accumulate a good fund of around Rs 41 lakh during the investment period.

PPF calculator: A Public Provident Fund (PPF) account is a risk-free investment and tax-saving tool backed by the central government. This small savings scheme offers attractive long-term returns. Currently, the PPF interest rate stands at 7.1%. The PPF account has a maturity period of 15 years, but it can be extended indefinitely in blocks of 5 years. This makes it an excellent option for building a retirement corpus.

If you invest ₹12,500 monthly in a Public Provident Fund (PPF), you could accumulate a substantial corpus of nearly ₹41 lakh over the investment period.

PPF calculator Here’s how it works

An investor can contribute a minimum of ₹500 and a maximum of ₹1.5 lakh within a financial year. Contributions can be made only once per month.

Monthly Investment: ₹12,500

Investment Duration: PPF accounts have a tenure of 15 years, but you can extend them in blocks of 5 years.

Interest Rate: The current PPF interest rate is approximately 7.1% annually.

However, if the PPF account holder uses the extension benefit and avails of the compounding benefit for the next 15 years, then he or she can make ₹1.5 crore in 30 years.

Benefits of PPF

Safety: PPF is backed by the government, making it a secure investment option.

Tax Benefits: The Public Provident Fund scheme is quite popular among taxpayers. One important reason for its popularity is that PPF falls under exempt–exempt–exempt tax status.

PPF qualifies for the EEE tax regime. Under Section 80C of the IT Act, PPF deposits are tax-deductible up to ₹1.5 Lakh per financial year. Moreover, the interest generated from the investment and the PPF maturity amount are also tax-free.

Maturity Amount: At maturity, the entire amount, including interest earned, is tax-free.

Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
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