PPF For Regular Income: How can you get over Rs 1,00,000 a year tax-free income?

The PPF is a popular way to save for your retirement. It offers guaranteed returns and tax benefits. Anyone living in India, whether working, self-employed or retired, can open a PPF account with just Rs 500.

Anamika Singh | Jan 28, 2025, 10:00 PM IST

The PPF is a great way to save for the long term. It gives you a fixed return of 7.1 per cent per year and tax benefits. You can start with just Rs 500 at a post office or bank. But did you know you can earn up to Rs 12,87,575 annually tax-free income from PPF? Let's find out how is it possible with the help of calculations.

Photos source: Pixabay/Representational

(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)

 

1/15

Public Provident Fund (PPF): A smart way to invest

Public Provident Fund (PPF): A smart way to invest

The PPF is a great way to plan for your retirement and diversify your investments. You can easily open a PPF account at a bank or post office. With PPF, you get guaranteed returns and tax benefits. Anyone can open an account, whether you're working, self-employed, or a student. Even parents or guardians can open an account for their minor children

2/15

What is maturity period of PPF account?

What is maturity period of PPF account?

The maturity period is 15 years. After 15 years, the account holders can extend the account for unlimited blocks of 5 years each. 

3/15

What is minimum and maximum PPF investment?

What is minimum and maximum PPF investment?

The minimum deposit in a financial year is 500, whereas the is Rs 1.5 lakh.

4/15

Tax benefits in PPF

Tax benefits in PPF

Contributions up to Rs 1.5 lakh in PPF are eligible for tax deductions under Section 80C, the interest earned and the corpus are also tax-free.

5/15

PPF Withdrawal Rules: Can you take out money before 15 years?

PPF Withdrawal Rules: Can you take out money before 15 years?

A PPF account holder is allowed to take 1 withdrawal during a financial year after 5 years, please note it does include the year of account opening. (if the account is open during 2023-24, the withdrawal can be taken during or after 2029-30).

6/15

PPF Withdrawal Limit: How much can you take out?

PPF Withdrawal Limit: How much can you take out?

You can withdraw up to 50 per cent of the balance at the credit at the end of the 4th preceding year or at the end of the preceding year, whichever is lower. (i.e., withdrawal can be taken in 2023-24, up to 50% of the balance as of 31.03.2023 or 31.03.2023, whichever is lower).

7/15

What happens to your PPF account after 15 years?

What happens to your PPF account after 15 years?

After 15 years of the maturity period, investors can continue their accounts with or without deposits. 

8/15

PPF Investment Strategy: How to get Rs 12,87,575 annually

PPF Investment Strategy: How to get Rs 12,87,575 annually

To generate Rs 12,87,575 annually from PPF one has to begin with Rs 1.50 lakh investment every financial year and continue it till the maturity period of 15 years. To get the maximum benefit of interest, the investment should be made between April 1-5 every financial year. 

9/15

PPF Corpus After 15 Years: How much can you expect?

PPF Corpus After 15 Years: How much can you expect?

The investment amount in 15 years will be Rs 22,50,000, the estimated interest will be Rs 18,18,209, and the estimated maturity will be Rs 40,68,209. The investor can take an extension of 5 years and keep investing Rs 1.50 lakh a year in the same way as before.

10/15

PPF Corpus After 20 Years: How much can you expect?

PPF Corpus After 20 Years: How much can you expect?

In 20 years, the total investment will be Rs 30,00,000, the estimated interest will be Rs 36,58,288, and the estimated corpus will be Rs 66,58,288. At this stage, the investor can take another extension of 5 years and continue the practice of investing Rs 1.50 lakh a year. 

11/15

PPF Corpus After 25 Years: How much can you expect?

PPF Corpus After 25 Years: How much can you expect?

In 25 years, the total investment will be Rs 37,50,000, the estimated interest will be Rs 65,58,015, and the estimated corpus will be Rs 1,03,08,015.

12/15

PPF Corpus After 30 Years: How much can you expect?

PPF Corpus After 30 Years: How much can you expect?

In 30 years, the total investment will be Rs 45,00,000, the estimated interest will be Rs 1,09,50,911, and the estimated corpus will be Rs 1,54,50,911.

13/15

What to do with your PPF corpus after 30 Years?

What to do with your PPF corpus after 30 Years?

From here onwards, investors can start withdrawing interest on the entire corpus. During extensions, the account holder is allowed to withdraw the interest amount once a year.  

14/15

PPF Interest Calculator: How much will you earn?

PPF Interest Calculator: How much will you earn?

The interest in a year will be Rs 12,87,575.

15/15

PPF Monthly Amount: Estimate your regular income

PPF Monthly Amount: Estimate your regular income

You will get Rs 91,417 a month. 

By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

x