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 tax benefits under Section 80C of the Income Tax Act. The scheme has a maturity period of 15 years, but this calculator focuses on the 10-year projection.

2. How Does the Calculator Work?

The calculator uses the PPF maturity formula:

Where:

• \( Annual Deposit \) — Yearly investment amount in PPF (INR)
• \( Rate \) — Current PPF interest rate (as percentage)
• \( 10 \) — Number of years for projection

Explanation: The formula calculates the future value of annual deposits with compound interest, accounting for the fact that deposits are typically made at the beginning of each financial year.

3. Importance of PPF Calculation

Details: Calculating PPF maturity helps in financial planning by projecting the future value of your investments. It helps assess whether PPF aligns with your long-term financial goals.

4. Using the Calculator

Tips: Enter your planned annual deposit amount in INR and the current PPF interest rate in percentage. The calculator will project your PPF value after 10 years.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum and maximum PPF deposit?
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 80C.

Q4: Can I withdraw before 10 years?
A: Partial withdrawals are allowed from the 7th financial year onward, subject to certain conditions.

Q5: How often is interest calculated in PPF?
A: Interest is calculated monthly but credited annually at the end of the financial year.