What is PPF (Public Provident Fund)?

PPF is a long-term tax-saving investment scheme backed by the Government of India. It offers safety, attractive interest rates, and tax benefits under Section 80C.

Key Rules of PPF

• Tenure: Minimum 15 years. Can be extended in blocks of 5 years indefinitely.
• Investment Limits: Minimum ₹500 and Maximum ₹1,50,000 per financial year.
• Tax Benefit: EEE (Exempt-Exempt-Exempt) status. Principal, interest, and maturity amount are all tax-free.
• Compounding: Interest is calculated monthly but credited to the account annually on 31st March.

PPF Formula

F = P [({(1+i)^n} - 1) / i]
F = Maturity Value | P = Annual Installment | i = Rate of Interest | n = Number of Years.