PPF Calculator

EEE stands for Exempt-Exempt-Exempt — meaning all three stages of PPF are tax-free: (1) Investment is deductible under Section 80C (up to ₹1.5L/year), (2) Interest earned is fully tax-exempt (unlike FD interest), and (3) Maturity amount is entirely tax-free. For a taxpayer in the 30% slab, the effective pre-tax yield of a 7.1% PPF is 7.1% ÷ (1 − 0.30) = 10.14% — far exceeding most comparable fixed-income options after tax.

Yes. A loan can be taken from the 3rd financial year to the 6th financial year of account opening. The maximum loan amount is 25% of the balance at the end of the second year preceding the year in which the loan is applied. For example, if applying in Year 4, the loan limit is 25% of balance at end of Year 2. The interest rate is 1% above the PPF rate. Loans must be repaid within 36 months; a new loan is available only after repaying the previous one. After the 6th year, partial withdrawal (not loan) becomes the applicable feature.

After the 15-year maturity, you have two options: (A) Extension with deposits — continue depositing up to ₹1.5L/year for 5-year blocks. The corpus keeps earning interest at the current PPF rate, and you retain full 80C deductions. (B) Extension without deposits — close the PPF but do not withdraw; the balance continues earning PPF interest tax-free indefinitely. You can make one withdrawal per year. Option B is powerful for those who no longer need the 80C benefit but want risk-free, tax-free compounding.

Partial withdrawals are allowed from the 7th financial year onwards. The maximum amount you can withdraw is the lower of: (a) 50% of the balance at the end of the 4th year preceding the withdrawal year, or (b) 50% of the balance at the end of the immediately preceding year. For example, withdrawing in Year 10 means the limit is 50% of the lower of the Year 6 balance or Year 9 balance. Only one withdrawal is permitted per year. Premature full closure (with penalty) is allowed after 5 years for specific medical or education reasons.

Under the new tax regime (default from FY 2024-25), Section 80C deductions are not available — so the tax-saving advantage on contributions is lost. However, the interest and maturity remain fully tax-free in both regimes. The effective yield reverts to the nominal 7.1%, which is still competitive versus post-tax FD returns for any tax payer. For someone in the new regime, PPF still makes sense for its sovereign safety, guaranteed 7.1% tax-free return, and forced long-term savings discipline — but ELSS's extra return potential becomes more compelling without the 80C constraint.