{BEST} PPF CALCULATOR: What is the Public Provident Fund (PPF)

ppf calculator

PPF Calculator (Public Provident Fund): Because of its numerous investor-friendly features and associated benefits, the public provident fund is a common investment scheme among investors. It’s a long-term investment strategy that appeals to people who want to make a lot of money while maintaining a steady income. Individuals who open a PPF account are primarily concerned with the safety of their principal.


Why should you open a PPF Account?

Individuals with a low risk appetite should consider a public provident fund scheme. Since the government has mandated this programme, it is backed by assured returns to protect the financial needs of the Indian people. Furthermore, the PPF account’s invested assets are not market-linked.

Investors can diversify their financial and investment portfolio by joining a public provident fund. PPF accounts will help you preserve your resources through a downturn in the business cycle.

PPF Account Features

The following are the key features of a public provident fund scheme:

1.Principal Amount:

A provident fund scheme allows you to spend a minimum of Rs. 500 and a maximum of Rs. 1.5 lakh every year. This investment may be made as a lump sum or as a series of instalments. In a single financial year, however, a person is only entitled for 12 instalments into a PPF account. A yearly investment in a PPF account is needed to keep the account active.

2.Investment Tenure

A PPF account has a 15-year investment lock-in duration after which funds cannot be fully withdrawn. If necessary, an investor may opt to extend the lock-in duration by another 5 years

3.Loan against Investment

Loans against investment amounts are available via public provident funds. However, the loan will only be issued if it is taken between the beginning of the third year and the end of the sixth year after the account is enabled.

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How can we open a PPF Account

Loans against investment amounts are available via public provident funds. However, the loan will only be issued if it is taken between the beginning of the third year and the end of the sixth year after the account is enabled.

Documents required to open a PPF Account

1.Aadhaar, Voter ID, Driver’s License, and other KYC documents are used to verify an individual’s identity.

2. Residential address proof.

3. PAN card.

4. Form for nominee declaration.

5. Passport-sized photograph.

Tax Benefits

The principal sum invested in a PPF account is subject to income tax deductions. Section 80C of the Income Tax Act of 1961 allows you to claim a tax exemption on the full amount of your investment. It should be noted, however, that the maximum amount of money that can be spent in a single financial year is Rs. 1.5 lakh.

This tax incentive is also applicable for all 80 C investments taken together.

The net interest earned on a PPF investment is therefore not subject to taxation. As a result, the whole amount redeemed from a PPF account when it reaches maturity is tax-free. Many Indian investors are attracted to the public provident fund system as a result of this programme.


If a person wants to withdraw money from his or her PPF account, he or she must follow a number of rules.

The principal amount invested in such plans is subject to a 15-year lock-in requirement. Partial removal is possible in the event of an emergency involving particular end-uses. However, this balance can only be withdrawn after the account has been active for 5 years.

You can withdraw up to 50% of the total balance on your credit card at the end of the fourth financial year or the end of the previous year, whichever is lower.

Investors should be aware that funds deposited in a PPF account cannot be withdrawn until the maturity period has passed. This government-backed instrument is a good choice for people looking for long-term risk-free investment opportunities with consistent returns.

 Premature Closure of PPF Account

It is possible to close your PPF account early, but only in some circumstances. If you close your account before the end of the year, you will earn 1% less interest than the current rate. The first and most important requirement is that your PPF account has been open for at least 5 years from the date of  account opening.

Condition for allowing Premature Closure

If the account holder needs money to further his or her education. Documents such as receipts for fees and proof of admission may be needed.

If the account holder, his or her parents, his or her dependent children, or his or her spouse has a life-threatening illness. Medical records as well as other relevant documentation must be submitted.

If your status as a resident changes. Proof of citizenship transition, a copy of the passport, visa, and income tax returns are all necessary documents.

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