Online PPF Calculator 2021: A Public Provident Fund (PPF) account is something in which an earning individual invests keeping retirement goal in focus. As per the income tax act, one's PPF investment, PPF interest rate and PPF maturity is free from income tax outgo. So, one's PPF account not only helps an investor accumulate a retirement fund, it also helps an earning individual to save income tax at the time of income tax return (ITR) filing.

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Speaking on the income tax rules applicable on one's PPF account, Manikaran Singhal, Founder at goodmoneying.com said, "PPF investment falls under EEE category as the PPF investment up to Rs 1.5 lakh in a particular financial year is exempted from income tax under Section 80C. Apart from that, PPF interest accrued in one's PPF and PPF maturity amount is free from any kind of income tax liability." However, he said that a PPF account holder can't invest more than Rs 1.5 lakh in one's PPF account and one can't have more than one PPF account.

On PPF interest rate and retirement fund that one can accumulate from PPF account, SEBI registered tax and investment expert Jitendra Solanki said, "PPF account has maturity period of 15 years but one can extend PPF account by submitting Form-16H in the last year of the PPF maturity. This PPF account extension can be done in blocks of 15 years and there is no bar on how many times one can extend one's PPF account."

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Assuming a person invests in PPF account for 30 years submitting Form 16-H on three occasions (15h, 20th and 25th year of PPF account opening), and PPF interest rate for the entire period at 7.1 per cent, the PPF calculator suggests that one's PPF maturity amount after 30 years will be Rs 1,11,24,656 or Rs 1.11 crore if he or she invests Rs 9,000 per month of Rs 1,08,000 in one year.

Online PPF Calculator 2021

Source: Groww PPF Calculator 

In this 30 years of PPF investment, one would be investing Rs 32,40,000 while the PPF interest earned during the entire investment period will be Rs 78,84,656.

So, at a PPF interest rate of 7.1 per cent, one's Public Provident Fund account can help to become a crorepati, if this PPF trick is used.