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PPF Tax Benefits And Maturity: Do You Know Extending PPF Tenure Can Yield Massive Returns? Check Interest Rate, Withdrawal Rules
PPF Current Interest Rate For 2024-25: PPF (Public Provident Fund) is a safe and reliable investment option, fully backed by the Government of India. It guarantees risk-free returns, making it ideal for conservative investors seeking a stable long-term savings tool. Let's have a quick look at the PPF investment range, tax benefits, partial withdrawal rules, and the current interest rate.
PPF Launch Date
The Public Provident Fund (PPF) was launched in 1968 to encourage individuals to convert small savings into long-term investments, offering decent returns along with the added advantage of tax savings.
PPF: Tax Benefits (EEE Status)
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PPF falls under the EEE (Exempt-Exempt-Exempt) category, meaning the investment amount, annual interest earned, and final maturity amount are all completely tax-free under Section 80C of the Income Tax Act.
PPF Maturity Rules: Can You Keep It Going After 15 Years?
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The PPF account has a 15-year lock-in period. After maturity, it can be extended in 5-year blocks by applying in Form-4. This makes it suitable for long-term goals like retirement or children’s education.
PPF Investment Range: Rs 500 to Rs 1.5 Lakh
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A PPF account can be opened with a minimum of Rs 500 annually, while the maximum limit is ₹1.5 lakh per financial year. This makes it flexible and accessible for all income groups.
PPF Interest Rates For April–June 2025 Quarter
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For April–June 2025 quarter, the PPF interest rate stands at 7.1 per cent per annum. The government reviews and revises this rate quarterly based on market trends and other economic factors.
PPF: How To Earn Extra Tax-Free Interest ?
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To earn full interest for the month, deposit your money before the 5th of each month or by April 5 for lump-sum payments. Interest is calculated on the lowest monthly balance.
PPF: Partial Withdrawals Rules
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PPF is usually viewed as a long-term locked-in investment, but partial withdrawals are allowed from the 7th financial year onwards. You can withdraw up to 50 per cent of either the 4th year's balance or the previous year’s balance, whichever is lower.
How To Activate Your Deactivated PPF Account?
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A deactivated PPF account can be reactivated by depositing Rs 500 for each year missed, along with a penalty of Rs 50 per year.
PPF Calculator: Extending PPF Tenure Can Yield Massive Returns
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If you invest the maximum amount of Rs 1,50,000 annually for 15 years, the total investment will be Rs 22,50,000. The interest earned on this amount will be approximately Rs 18,18,209, bringing the total maturity value to Rs 40,68,209. After the 15-year PPF maturity period, the account can be extended in 5-year blocks at an interest rate of 7.1%. After an additional 5 years, the total amount is estimated to grow to around Rs 57,23,723.50 by submitting Form-4. (Image Credit: File Photo)
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