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PPF Calculator: Public Provident Fund (PPF) account is a risk-free investment and tax-saving instrument backed by the central government. This small savings scheme offers attractive long-term returns. Currently, PPF offers 7.1% interest. The maturity period of the PPF account is 15 years, but it can be extended indefinitely in blocks of 5 years. This makes it a great option for building a retirement corpus.
If you invest Rs 12,500 every month in Public Provident Fund, you can accumulate a healthy corpus 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 in a financial year. However, contributions can be made only once a month.
Let us understand how much return you will get from PPF calculator.
Monthly Investment: Rs 12,500
Annual Investment: 150000 rupees
Time period: 15 years
Interest Rate: 7.1%
investment funds: Rs 2250000.
Total Interest: Rs 1818209
maturity value: Rs 4068209.
The tenure of PPF accounts is 15 years, but you can extend them in blocks of 5 years. However, if a PPF account holder utilizes 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 Protection: PPF is backed by the government, making it a safe investment option.
tax benefits: The Public Provident Fund scheme is quite popular among the taxpayers. An important reason for its popularity is that PPF comes under tax exempt status.
PPF is eligible for EEP tax exemption. Under Section 80C of the Income Tax Act, PPF deposits are tax-deductible up to Rs 1.5 lakh per financial year. Additionally, the interest received from investments and the PPF maturity amount are also tax-free.
