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 on the investment with income-tax benefits under Section 80C of the Income Tax Act.

2. How Does PPF Calculation Work?

The calculator uses the PPF maturity formula:

Where:

• \( Principal \) — Initial investment amount
• \( Rate \) — Annual interest rate
• \( Time \) — Investment period in years

Explanation: The formula calculates compound interest on the principal amount over the investment period.

3. Importance of PPF Calculation

Details: Calculating PPF maturity helps in financial planning, understanding returns on investment, and comparing with other investment options.

4. Using the Calculator

Tips: Enter principal amount in your local currency, annual interest rate in percentage, and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: The interest rate is set by the government quarterly. As of 2023, it's typically around 7-8% per annum.

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

Q3: What is the lock-in period for PPF?
A: PPF has a maturity period of 15 years which can be extended in blocks of 5 years.

Q4: Is PPF interest compounded annually?
A: Yes, interest is compounded annually and credited at the end of the financial year.

Q5: Are there tax benefits for PPF?
A: Yes, PPF investments qualify for tax deduction under Section 80C, and the maturity amount is tax-free.