1. What is PPF?

The Public Provident Fund (PPF) is a long-term savings scheme introduced by the Government of India. It offers attractive interest rates and returns that are fully exempt from Tax under Section 80C of the Income Tax Act.

2. How Does PPF Calculation Work?

The calculator uses the PPF formula:

Where:

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

Explanation: The formula accounts for compound interest on yearly contributions, with interest being compounded annually.

3. Benefits of PPF

Details: PPF offers tax benefits under Section 80C, has a sovereign guarantee, provides stable returns, and has a long-term investment horizon of 15 years (extendable in blocks of 5 years).

4. Using the Calculator

Tips: Enter annual investment (minimum ₹500, maximum ₹1.5 lakh), current interest rate (as set by government), and investment period (minimum 15 years).

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: The rate is set by the government quarterly. As of 2023, it's 7.1% per annum (compounded annually).

Q2: What is the minimum and maximum investment in PPF?
A: Minimum ₹500 per year, maximum ₹1.5 lakh per year (across all PPF accounts).

Q3: Can I extend my PPF account beyond 15 years?
A: Yes, you can extend in blocks of 5 years after the initial 15-year period.

Q4: Is PPF interest taxable?
A: No, PPF interest is completely tax-free under Section 10 of the Income Tax Act.

Q5: Can I take a loan against my PPF?
A: Yes, you can take a loan between the 3rd and 6th financial year of account opening.