Public Provident Fund: Tax-Saving Savings Scheme in India Explained
When you think about Public Provident Fund, a government-backed long-term savings scheme in India that offers tax benefits under Section 80C. Also known as PPF, it's one of the safest ways to build wealth over 15 years with guaranteed returns and full tax exemption at maturity. Unlike fixed deposits or mutual funds, PPF isn’t affected by market swings. Your money grows steadily, and you don’t pay tax on interest earned or the final payout. That’s why millions of Indian families rely on it for their child’s education, marriage, or retirement.
It’s closely tied to Section 80C, the income tax provision that lets you deduct up to ₹1.5 lakh annually from your taxable income. PPF is one of the most popular tools under this section — along with ELSS funds, home loan principal repayment, and NPS. But unlike ELSS, which locks your money for only 3 years and carries market risk, PPF gives you stability. You can deposit as little as ₹500 or as much as ₹1.5 lakh each year. The interest rate changes quarterly but stays higher than bank FDs — currently around 7.1%.
Another key player here is long-term savings, a strategy focused on growing wealth over 10+ years with minimal risk and maximum tax efficiency. PPF fits perfectly into this. It’s not for quick gains. You can’t withdraw everything before 15 years — but after that, you can extend it in 5-year blocks and keep earning tax-free interest. You can even take a loan against it after year 3, or make partial withdrawals after year 7. That flexibility makes it useful for major life events without breaking the savings habit.
People often compare PPF with SSY (Sukanya Samriddhi Yojana) for girls, or NPS for retirement. But PPF is open to anyone — salaried, self-employed, even minors (through guardians). It’s not just for the rich. A daily ₹100 deposit adds up to over ₹3.6 lakh in 15 years. That’s real money, tax-free, with zero effort after the initial setup.
What you’ll find below are clear, no-fluff guides on how PPF works alongside other tax-saving tools. You’ll see how it stacks up against ELSS funds, how to maximize your ₹1.5 lakh limit under Section 80C, and why some people mix PPF with NPS for better retirement outcomes. No jargon. No sales pitches. Just what you need to know to make smart, lasting choices with your money.
PPF Maturity in India and What to Do After It Ends: Extend Your Investment Wisely
Learn how to extend your PPF account after 15 years in India to keep earning tax-free interest. Discover withdrawal rules, extension options, and why many retirees choose to leave their money in PPF instead of cashing out.
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