Introduction

Public Provident Fund (PPF) is a government-backed savings scheme that allows individuals to save for their future while earning tax-free returns. The PPF Calculator is a tool that helps you estimate the returns on your PPF investment based on your annual contributions.

How to Use the PPF Calculator

• Input the amount you plan to contribute each year into your PPF account
• Input the expected rate of return (usually around 7.1%)
• Input the time period (in years) for which you plan to make contributions The calculator will then estimate the total maturity amount at the end of the tenure.

Alternatives to PPF

• National Savings Certificate (NSC)
• Senior Citizens Savings Scheme (SCSS)
• Sukanya Samriddhi Yojana (SSY)
• Bank fixed deposits (FDs)

Formula

The formula for calculating the maturity amount for PPF is:

A = P (1 + r/n)^(nt)

where, A = maturity amount P = principal or the initial amount invested r = rate of interest n = number of compounding intervals per year (usually 12) t = number of years

Tax Benefits

• The contributions made to PPF are eligible for tax deductions under Section 80C of the Income Tax Act.
• The interest earned and the maturity amount are tax-free.

Frequently Asked Questions

• What is the minimum and maximum amount I can contribute to my PPF account? A: The minimum annual contribution is Rs.500 and the maximum is Rs.1.5 lakh.

• How long is the tenure of a PPF account? A: The tenure of a PPF account is 15 years.

• Can I withdraw money from my PPF account before maturity? A: You can make partial withdrawals from your PPF account after the 7th financial year, subject to certain conditions.

• Can I extend my PPF account after the maturity period? A: You can extend your PPF account for a block period of 5 years at a time, after the maturity period.