PPF Calculator: Can one get Rs 51,500 a month tax-free income from PPF? Know how
PPF Calculator: Public Provident Fund (PPF) is used to make tax-free retirement corpus but it can also be used to get regular income a month. The income will also be tax-free.
PPF Calculator: Public Provident Fund (PPF) is one of the popular fixed interest scheme which is run by banks and post office. The scheme provides tax-free income. The amount invested and the interest earned are also tax-free. Investors can also use PPF investment for the diversification of their portfolio as it can form their debt portion. The guaranteed return scheme provides compound interest which, if, accumulated, in the long can help one build over 1 crore corpus. One can withdraw the corpus after 15 years of lock-in period. But if they not only can extend their PPF account for unlimited 5 years of blocks, but they can also withdraw interest annually.
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(Disclaimer: This is not investment advice. Do your own due diligence or consult and expert for financial planning.)
How PPF works
Minimum and maximum yearly PPF investment
PPF tax benefits
PPF account extension
The account can extended after 15 years with or without investments. On maturity, an investor gets 3 options
1. They can take maturity payment by submitting account closure form along with passbook at concerned Post Office.
2. They can retain maturity value in their account further without deposit, the PPF interest rate will be applicable and the payment can be taken any time or can take 1 withdrawal in each FY.
3. They can extend their account for further block of 5 years and so on (within 1 year of maturity) by submitting prescribed extension form at the concerned post office.
4. In the extended account with deposits, 1 withdrawal can be taken in each financial year subject to maximum limit 60 per cent of the balance credit at the time of maturity in the block of 5 years.
PPF withdrawal
PPF account premature closure
Premature closure shall be allowed after 5 years from the end of the year in which the account was opened in conditions such as life threatening disease of account holder, spouse or dependent children, higher education of account holder or dependent children, or change of resident status of account holder (became NRI).