Small Savings, Big Miracle! Investing in Public Provident Fund (PPF) account gives you great benefits in tax. The contribution of up to Rs 1.5 lakh in a year is eligible for tax deduction under Section 80C. In addition, the interest and principal earned on your investment is completely tax-free. PPF is a government -backed scheme in India which is currently giving an annual return of 7.1 percent. The duration of this scheme is 15 years, which is an option to increase in 5-year blocks. It is open to all salaried and self-employed persons.
Can PPF be withdrawn before maturity?
Although the maturity period of the Public Provident Fund (PPF) account is 15 years, the customer or account holder can do partial withdrawal before maturity. Some things are worth knowing here:
- After completion of 5 years from the date of opening the account, you can withdraw once every financial year.
- Note that the year of opening an account is also included in the 5-year lock-in period.
- For example, if you have opened your PPF account in 2024-25 years, you can do your first withdrawal 2030-31 years or after that.
Know the withdrawal limit
Some limitations should be kept in mind when withdrawing from your Public Provident Fund (PPF) account:
- You can withdraw up to 50 percent of the remaining amount at the end of the previous year or at the end of the previous year, whichever is less.
- For example, if you are withdrawn in the financial year 2024-25, you can withdraw up to 50 percent of the remaining amount by 31 March 2023 or 31 March 2024, which is less.
What happens to PPF account after 15 years?
After completing the initial 15 -year maturity period, you will have unprecedented flexibility to manage your Public Provident Fund (PPF) account:
- You can choose to continue your account with or without additional deposits.
- You can also increase it in a 5 -year block. This will give you long -term benefits.
How to earn more than 18 lakh rupees annually from PPF?
To earn more than ₹ 18 lakhs annually from PPF (₹ 18 lakh/year), you have to start an investment of ₹ 1.50 lakh every year and continue it for a maturity period of 15 years. Later, you can increase the account for maximum returns into an unlimited block of 5 years. It is a long -term and disciplined financial plan.
What will be the fund of PPF after 15 years?
In 15 years, the investment amount will be ₹ 22,50,000, the estimated interest will be ₹ 18,18,209 and the estimated maturity will be ₹ 40,68,209. Investors can take a 5 -year extension and continue investing ₹ 1.50 lakhs annually as before.
What will be the fund of PPF after 20 years?
The total investment in 20 years will be ₹ 30,00,000, the estimated interest will be ₹ 36,58,288, and the estimated fund will be ₹ 66,58,288. At this stage, the investor can take another 5 -year expansion and continue investing ₹ 1.50 lakhs annually.
What will be the PPF fund after 25 years?
The total investment in 25 years will be ₹ 37,50,000, the estimated interest will be ₹ 65,58,015, and the estimated fund will be ₹ 1,03,08,015. This is a great opportunity for you to become a millionaire.
What will be the fund of PPF after 30 years?
The total investment in 30 years will be ₹ 45,00,000, the estimated interest amount will be ₹ 1,09,50,911, and the estimated fund will be ₹ 1,54,50,911.
