PPF Calculator

The current PPF interest rate for Q4 FY 2025-26 (January-March 2026) is 7.1% per annum. PPF interest rates are revised quarterly by the government and have remained at 7.1% since April 2020. The interest is compounded annually and credited to your account at the end of each financial year.

PPF has a mandatory lock-in period of 15 years from the end of the financial year in which you opened the account. After maturity, you can extend it in blocks of 5 years indefinitely. You can extend with or without contributions. If extending with contributions, you continue to enjoy Section 80C benefits. The extension request must be submitted within 1 year of maturity.

PPF enjoys EEE (Exempt-Exempt-Exempt) tax status, making it one of the most tax-efficient investments. Contributions up to ₹1.5 lakh per year qualify for Section 80C deduction, reducing your taxable income. The interest earned is completely tax-free, and the maturity amount is also exempt from income tax. Unlike FDs or NSC, there is no TDS on PPF interest or maturity proceeds.

Partial withdrawals are allowed from the 7th financial year onwards (after completing 5 years). You can withdraw up to 50% of the balance at the end of the 4th preceding year or the immediately preceding year, whichever is lower. For example, in year 7, you can withdraw 50% of your balance at the end of year 3 or year 6, whichever is lower. Premature closure is allowed only in specific cases like serious illness, higher education, or change in residency status.

TallyPrime helps businesses and individuals track PPF investments through its comprehensive accounting features. You can create a dedicated ledger under Investments to record PPF contributions, track interest accruals at year-end, and monitor the growing balance. For employers managing employee benefits, TallyPrime's payroll module can automate PPF contribution deductions from salary and generate Form 12BB for employees' tax declaration purposes.