Estimate how much your Public Provident Fund (PPF) investment will grow over 15 years and beyond, with optional annual step-up contributions.
Investment Details
PPF maximum limit is ₹1,50,000 per financial year
%
Current PPF rate: 7.1%
Min 15 years, extend in 5-year blocks
%
Increase your annual contribution by this % each year (capped at ₹1.5L)
Results
Maturity Amount
₹0
Total Investment
₹0
Total Interest Earned
₹0
Interest % of Maturity
0%
PPF: Tax-Free Compounding (EEE Status)
The Public Provident Fund enjoys Exempt-Exempt-Exempt (EEE) tax status in India. Your contributions (up to ₹1.5 lakh/year) qualify for deduction under Section 80C, the interest earned is tax-free, and the maturity amount is also completely exempt from tax. This makes PPF one of the most tax-efficient long-term savings instruments available.
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The PPF has a mandatory lock-in period of 15 years from the end of the financial year in which you opened the account. You cannot fully withdraw your balance before this period ends. However, the account can be extended in blocks of 5 years after maturity, either with or without fresh contributions, giving you flexibility to continue earning tax-free interest.
What are the tax benefits of investing in PPF?
PPF enjoys EEE (Exempt-Exempt-Exempt) tax status, making it one of the most tax-friendly investments in India. Your annual contributions up to ₹1,50,000 are deductible under Section 80C of the Income Tax Act. The interest earned each year is completely tax-free, and the entire maturity amount (principal + interest) is exempt from income tax. There is no TDS on PPF interest or withdrawals.
Can I make partial withdrawals from my PPF account?
Yes, partial withdrawals are permitted from the 7th financial year onwards (i.e., after completing 5 full financial years from the year of account opening). You can withdraw up to 50% of the balance at the end of the 4th preceding financial year, or the balance at the end of the immediately preceding financial year, whichever is lower. Only one withdrawal is allowed per financial year, and it is completely tax-free.
Can I take a loan against my PPF balance?
Yes, you can take a loan against your PPF balance from the 3rd financial year to the 6th financial year of opening the account. The loan amount can be up to 25% of the balance at the end of the 2nd immediately preceding financial year. The interest rate on the loan is 1% above the prevailing PPF interest rate. The loan must be repaid within 36 months. From the 7th year onwards, you become eligible for partial withdrawals instead of loans.
What happens to my PPF account after 15 years? Can I extend it?
After the 15-year maturity, you have three options: (1) Withdraw the entire maturity amount tax-free. (2) Extend the account for blocks of 5 years without making fresh contributions — your existing balance continues to earn interest. (3) Extend the account for 5-year blocks with fresh contributions (up to ₹1.5 lakh/year) to continue building your corpus while enjoying Section 80C deductions. You must submit Form H to your bank/post office within one year of maturity to opt for extension with contributions.