Public Provident Fund Scheme Calculator

PPF Maturity Formula:

\[ Maturity = \sum_{year=1}^{15} AnnualDeposit \times (1 + Rate)^{(15 - year)} \]

Maturity Amount:

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1. What is the Public Provident Fund Scheme?

The Public Provident Fund (PPF) is a long-term savings scheme introduced by the Government of India. It offers attractive interest rates and returns that are fully exempt from tax under Section 80C of the Income Tax Act.

2. How Does the Calculator Work?

The calculator uses the PPF maturity formula:

\[ Maturity = \sum_{year=1}^{15} AnnualDeposit \times (1 + Rate)^{(15 - year)} \]

Where:

\( AnnualDeposit \) — Yearly investment amount (₹500 to ₹150,000)
\( Rate \) — Current PPF interest rate (as decimal)
15 — PPF maturity period in years

Explanation: The formula calculates the compound interest for each year's deposit until maturity, summing all values to get the total maturity amount.

3. Importance of PPF Calculation

Details: Calculating PPF maturity helps in financial planning, understanding tax benefits, and comparing with other investment options.

4. Using the Calculator

Tips: Enter annual deposit amount (between ₹500 and ₹150,000) and current PPF interest rate. The calculator will compute the maturity amount after 15 years.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum and maximum investment in PPF?
A: Minimum ₹500 per year, maximum ₹150,000 per year. Minimum of 12 installments per year.

Q2: Can I extend my PPF account beyond 15 years?
A: Yes, in blocks of 5 years with or without further contributions.

Q3: Is PPF interest rate fixed?
A: No, it's set by the government quarterly and may change.

Q4: Can I withdraw before maturity?
A: Partial withdrawals are allowed from the 7th financial year.

Q5: Is PPF taxable?
A: No, PPF is EEE (Exempt-Exempt-Exempt) under Indian tax laws.