PPF Saving Scheme: Turn ₹1.5 Lakh/Year into ₹1.95 Crore with 100% Tax-Free, Know How

Public Provident Fund (PPF) is considered an extremely safe investment option backed by the Government of India, which offers guaranteed returns to investors. But do you know that after investing in PPF for 15 years, you can also earn a tax-free income of ₹ 1 lakh every month? If not, let us tell you how this is possible. PPF is not just a savings scheme, but it is a foolproof way to achieve long-term financial goals and ensure a secure retirement.

Investment in PPF

You can invest a minimum of ₹ 500 and a maximum of ₹ 1.5 lakh every year in a PPF account. You can make this investment as a lump sum amount or in 12 monthly installments, whichever is convenient for you. This flexibility makes PPF accessible to all income groups.

What after 15 years

If you invest an amount of ₹1.5 lakh every year for 15 years, your account will mature. After this, you can extend it for an additional extension of 5-5 years and continue the investment process. This feature makes PPF a powerful wealth-creation tool, as it allows you to take advantage of the power of compounding in the long term.

The growing story of your investment

Let’s take a look at how your investment grows over time:

In 15 years

Your total investment would be around ₹22.5 lakh, with the total maturity amount including interest reaching up to ₹40.68 lakh. This is an excellent return, especially when you consider the tax-free status.

In 20 years

With continued investment and expansion, this amount can grow to ₹66.58 lakh.

In 30 years

In 30 years, the same investment can grow to ₹1.54 crore.

This shows how regular and disciplined investment can make you a crorepati.

Amazing benefit of tax-free income

With consistent investments and compounding of interest, your total deposit amount can reach ₹1.95 crores in about 33 years. This will include interest of about ₹1.45 crores, which is completely tax-free! This is the biggest attraction of PPF, as you do not pay any tax on this entire amount.

How to get a tax-free income of ₹1 lakh per month

After 33 years, your total amount (about ₹1.95 crores) will earn interest of about ₹16.24 lakhs annually. If you withdraw this interest amount every month (without disturbing the principal), it will give you a monthly tax-free income of about ₹1,15,363. It is a stable and secure income source that can help you meet your post-retirement needs.