PPF, like all other small saving schemes, including Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Scheme, and the National Savings Certificate (NSC), was launched by the government to encourage small savings and to provide returns on those savings. Since the PPF scheme comes under the Exempt-Exempt-Exempt (EEE) category of tax policy, the principal amount, the maturity amount, as well as the interest earned is exempt from taxes.
|PPF – Key Highlights|
|PPF Interest Rate||7.1% (Q1 FY 2022-23)|
|Minimum Investment Amount||Rs. 500|
|Maximum Investment Amount||Rs. 1.5 Lakh p.a.|
|Tenure||15 Years (Can be extended in blocks of 5 years thereafter)|
|Tax Benefit||Up to Rs.1.5 lakh under Section 80C|