Plan your guaranteed, 100% risk-free retirement wealth. Calculate annual compounding interest, total tax-free maturity corpus, and 15 to 30 year growth schedules.
| Year | Annual Deposit | Annual Interest Earned | Year-End PPF Balance |
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The Public Provident Fund (PPF) is a long-term, sovereign statutory savings scheme introduced by the Ministry of Finance, Government of India, under the PPF Act of 1968. Established to provide retirement security and disciplined long-term capital accumulation for self-employed professionals, private sector employees, and individual citizens, PPF is regarded as the gold standard of risk-free fixed income investing in India.
Because the scheme is backed 100% by the sovereign guarantee of the Central Government of India, your principal capital and accumulated compound interest carry zero default risk or market volatility.
PPF is one of the extremely rare financial instruments in India that commands full EEE Tax Status under the Indian Income Tax Act:
Annual deposits up to ₹1,50,000 are eligible for deduction from your gross total taxable income under Section 80C.
The annual interest credited (currently 7.1% p.a.) is completely tax-free. Unlike Fixed Deposits, zero TDS is deducted.
The entire maturity corpus redeemed after 15, 20, or 30 years is 100% tax-exempt in your hands.
Many investors miss out on thousands of rupees of compounding interest because they do not understand how PPF interest is calculated monthly by banks and post offices:
Strategic Tip: Always deposit your PPF contribution between the 1st and 5th of April (if investing lumpsum annually) or on/before the 5th of every month. Depositing on the 6th means you forfeit interest for that entire calendar month!
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