This calculator can be used to figure out your PPF Maturity Amount based on the PPF investment you make each year
Public Provident Fund (PPF) - Key Aspects
Who can open a account?
Any Individual can open account in Public provident Fund (PPF) in his own name or on behalf of minor for whom he is a guardian and HUF. Only one account can be opened in the name of a person. You cannot open a joint account with another individual. The account can only be opened in one personís name. You are free to nominate one or more individuals.
Where can I open a account?
PPF account can be opened in any branch of State Bank of India
and its subsidiaries.
What is the time duration of PPF?
It's a 15 years scheme. The entire balance can be withdrawn on maturity, i.e., after 15 years of the close of the financial year in which you opened the account. However, PPF accounts can be extended for a period of five years after maturity. During these five years, you earn the rate of interest and can also make fresh deposits.
What are the deposit amount rules?
Twelve deposits can be made in a financial year. Minimum amount of deposit in a year is Rs. 500 and maximum is Rs. 1,00,000. This is effective from December 1, 2011.
What is the interest rate on PPF accounts?
Currently the interest rate offered is 8.60% (effective from Decemeber 1, 2011). It may be changed in the future by Government of India.
Can I make withdrawals?
You can make one withdrawal every year from the 7th financial year of an amount not exceeding 50% of the balance to your credit at the end of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year, whichever is lower.
Can I get a loan on my PPF account?
You can take a loan from the third year of opening your account to the sixth year. Also, the loan amount will be upto a maximum of 25% of the balance in your account at the end of the first financial year (if you opt for the loan in the third year). If you opt for a loan in the fourth year, the second year's balance will be taken in to account and so on.
Do I get any tax benefits from my PPF account?
Yes. Under section 80C, you are eligible to claim deductions from your income for contributions made to PPF. Say your taxable income is Rs. 5,00,000 in a year and you contribute the maximum allowed limit of Rs. 1,00,000 to PPF. Then your taxable income becomes Rs. 4,00,000. Section 80C allows deductions of upto Rs. 1,00,000 per year from your taxable income. You can contribute the maximum allowed Rs. 1,00,000 to your PPF account and take advantage of the full 80c deduction amount. Besides this benefit, interest earned on your PPF deposits is completely exempt from tax.
What are the nomination rules?
Nomination available in the name of one or more persons. Nominee cannot continue account of the deceased subscriber in his/ her own name.
Can I discontinue contributions in the middle of the 15 years?
The subscriber may discontinue his account anytime after joining the fund. The repayment of the subscription with interest will be made only after 15 years form the end of the financial year in which the account was opened.