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PPF (Public provident fund) is the central government scheme framed under the PPF act. In simple terms, PPF is long term and government-backed small savings scheme that the government started to give retirement security to workers and self-employed individuals in the unorganized sector.
Today, PPF is one of the favorite investment avenues for Indian citizens. So, if you want to take the step of a safe investment option and earn a decent rate of return, then PPF is the best option for you.
PPF provides loans against the account that helps you during the events such as further studies, weddings, family, etc. The best thing is that the PPF provides you peace of mind while keeping your money safe.
Tax benefits of PPF account
PPF accounts give peace of mind to the account holder and keep their money safe. Along with this, the PPF account also has many tax benefits.
- To reiterate, the investment made in the PPF account is easily deductible under Section 80C of income tax. According to this, it is subject to a maximum permissible limit of 1.5 lac in the financial year.
- However, the interest earned on your investment is completely exempt from tax. So, the return of p.a. is 7.80% tax-free.
- Similarly, at maturity, the process of a PPF account is exempt from tax.
PPF calculator
The PPF calculator is one of the best online tools used to calculate the return on your investment made in your PPF account. This tool allows you to make a good investment and tax savings plan.
You can easily calculate the returns on your investment in a few seconds by using the PPF calculator. All you must do is enter some basic details, such as the number of installments, investment amount, etc., on the PPF calculator and get the return results.
You have two options while using the PPF calculator. You can choose either the fixed investment or variable investment over the time of 15-year tenure.
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Fixed investment option
In the fixed investment option, it is determined that you must deposit the fixed sum of the amount in your PPF account each year until the maturity of 15 years.
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Variable investment option
In the variable investment option, you can calculate the maturity amount of your deposit in your PPF account, even when the amount of investment in your PPF account is not constant.
Pros of PPF calculator
PPF calculator helps to generate the returns on your investments with a few clicks. It is easy to use this online calculator. Along with this, there are more benefits to using the PPF calculator.
- It calculates the interest on both variable and fixed investment option
- It calculates the permissible withdrawal limit at the tenure of 15 year
- It calculates the possible amount of loan that you can adopt against the PPF account.
Conclusion
PPF account is the account that helps people to manage their retirement. And PPF calculator is a helpful online tool used to calculate the return on investment made in the PPF account.