PPF Calculator

The current PPF interest rate is 7.1% (as of Q2 2023). The government reviews and revises this rate quarterly. Historical rates:

Partial withdrawals are permitted with conditions:

• Allowed once per year from 7th financial year onward
• Maximum withdrawal limit: 50% of balance at end of 4th preceding year or previous year's balance, whichever is lower
• Complete closure only after 15 years (can be extended indefinitely in 5-year blocks)
• Premature closure allowed after 5 years only for specific reasons (medical, education) with penalty

No, PPF enjoys EEE (Exempt-Exempt-Exempt) tax status:

• Investment: Deduction under Section 80C up to ₹1.5 lakh
• Interest: Completely tax-free
• Maturity: Entire amount tax-free including interest
• No TDS deduction on maturity
• No wealth tax applicable

Minimum: ₹500 per year (can be in one or multiple installments)

Maximum: ₹1.5 lakh per financial year (across all PPF accounts)

Key points:

• Can deposit in lump sum or in maximum 12 installments
• Deposits can be made anytime between 1st April and 31st March
• Amounts above ₹1.5 lakh won't earn interest and won't qualify for tax deduction
• No upper limit on account balance - only annual contribution limit

Yes, PPF accounts can be extended indefinitely in 5-year blocks:

• Extension can be with or without further contributions
• Must apply for extension within 1 year of maturity
• If extended with contributions: All existing rules continue
• If extended without contributions: Can make one withdrawal per year
• Interest continues to accrue on balance
• Can close anytime during extension period without penalty

Yes, PPF offers loan facility with these conditions:

• Available between 3rd and 6th financial year
• Maximum loan amount: 25% of balance at end of 2nd preceding year
• Interest rate: 2% above PPF rate (currently 9.1%)
• Repayment period: 36 months (3 years)
• Only one loan allowed at a time
• If loan not repaid, interest charged at PPF rate plus 1%
• No loan facility after 6th year

Consequences of not maintaining minimum balance:

• Account becomes inactive if minimum ₹500 not deposited in a year
• Can reactivate by paying ₹500 per defaulted year plus ₹50 penalty per year
• No interest for years when account was inactive
• After 15 years, inactive account can be closed but without further extensions
• Best to deposit at least ₹500 even if you can't maximize contributions