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: 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, PPF offers 7.1% interest. The maturity period of a PPF account is 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 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. You can contribute a minimum of Rs 500 and a maximum of Rs 1.5 lakh within a financial year. However, the contribution can be made only once per month.
Let’s understand how much return you will get from PPF calculator
Monthly investment: Rs 12,500
Annual investment: Rs 150000
Time period: 15 years
Interest rate: 7.1%
Invested amount: Rs 2250000
Total interest: Rs 1818209
Maturity value: Rs 4068209.
PPF accounts have a tenure of 15 years, but you can extend them in blocks of 5 years. However, if a PPF account holder uses the extension benefit and avails compounding benefits for the next 15 years, he can earn Rs 1.5 crore in 30 years.
Benefits of PPF
PPF Security: PPF is backed by the government, making it a safe investment option.
Tax Benefits: The Public Provident Fund scheme is quite popular among taxpayers. One of the important reasons for its popularity is that PPF falls under the exempt-exempt tax status.
PPF is eligible for EEE tax exemption. Under Section 80C of the IT Act, PPF deposits are tax-deductible up to Rs 1.5 lakh per financial year. Apart from this, the interest generated from the investment and the PPF maturity amount are also tax-free.
