1. What is PPF?

The Public Provident Fund (PPF) is a long-term savings scheme in India with a 15-year maturity period. It offers attractive interest rates and tax benefits under Section 80C of the Income Tax Act.

2. How Does the Calculator Work?

The calculator uses the PPF maturity formula:

Where:

• \( annual \) — Annual investment amount (₹)
• \( r \) — Annual interest rate (as decimal)
• 15 — Maturity period in years

Explanation: The formula calculates the future value of annual investments with compound interest, accounting for the fact that interest is credited at the end of the financial year.

3. Importance of PPF Calculation

Details: Calculating the maturity amount helps in financial planning and understanding the power of compounding in long-term investments.

4. Using the Calculator

Tips: Enter annual investment amount in ₹ and interest rate in percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum and maximum investment in PPF?
A: Minimum ₹500 per year, maximum ₹1.5 lakh per year (as of current rules).

Q2: Can I extend my PPF account beyond 15 years?
A: Yes, in blocks of 5 years after the initial 15-year period.

Q3: Is PPF interest taxable?
A: No, PPF interest is completely tax-free under Section 10 of the Income Tax Act.

Q4: How often is interest compounded in PPF?
A: Interest is compounded annually but credited at the end of the financial year.

Q5: Can I withdraw money before 15 years?
A: Partial withdrawals are allowed from the 7th financial year onward, subject to certain conditions.