PPF For Regular Income: How to Get Rs 60,000/Month Tax-Free Income from Public Provident Fund?

💰 PPF For Regular Income: How to Get ₹60,000/Month Tax-Free Income from Public Provident Fund

The Public Provident Fund (PPF) is a widely recognized government-backed savings scheme in India that offers guaranteed returns and tax benefits. With an interest rate of 7.1% (as of April 2020), it has become a preferred choice for individuals aiming for secure future savings. This guide will show you how to generate ₹60,000 monthly tax-free income from PPF.

💡 What is Public Provident Fund (PPF)?

• Public Provident Fund (PPF) is a long-term investment scheme launched by the Government of India.
• It offers guaranteed returns along with tax benefits under Section 80C of the Income Tax Act, 1961.
• Investments made under PPF are completely tax-free, including the principal, interest earned, and maturity amount.
• Individuals can open a PPF account in a bank or a post office.

📅 What is the Maturity Period of a PPF Account?

• The maturity period of a PPF account is 15 years.
• After 15 years, the investor can either withdraw the corpus or extend the account in 5-year blocks indefinitely.

💸 Minimum and Maximum PPF Investment

• Minimum Investment: ₹500 per financial year.
• Maximum Investment: ₹1.5 lakh per financial year.
• Deposit Frequency: Monthly, Quarterly, or Annually.

💵 Tax Benefits in PPF

• Investment up to ₹1.5 lakh/year qualifies for tax deduction under Section 80C of the Income Tax Act.
• Interest earned is completely tax-free.
• Maturity amount after 15 years is 100% tax-exempt.

💳 Can You Withdraw PPF Amount Before 15 Years?

• Yes, a PPF account holder can make one withdrawal per year after completing 5 years from the date of opening the account.
• The withdrawal limit is 50% of the account balance as of the end of the 4th preceding year or the preceding year, whichever is lower.

⏩ What Happens to PPF After 15 Years?

• After the maturity period of 15 years, the investor can either:
• Withdraw the entire amount or
• Extend the account in 5-year blocks with or without further deposits.

💹 How to Get ₹60,000/Month Tax-Free Income from PPF?

If you aim to generate ₹60,000/month tax-free income from PPF, follow these steps:

• Invest ₹1.5 lakh every financial year in your PPF account without fail.
• Continue your investment for 15 years.
• Always make your deposit between April 1-5 every financial year to gain maximum interest.

📊 Estimated Corpus After 15 Years

Investment Period	Total Investment	Estimated Interest	Estimated Maturity
15 Years	₹22,50,000	₹18,18,209	₹40,68,209

📊 Estimated Corpus After 20 Years (With Extension)

Investment Period	Total Investment	Estimated Interest	Estimated Corpus
20 Years	₹30,00,000	₹36,58,288	₹66,58,288

📊 Estimated Corpus After 25 Years (With Extension)

Investment Period	Total Investment	Estimated Interest	Estimated Corpus
25 Years	₹37,50,000	₹99,26,621	₹1,03,08,015

💰 What Happens After 25 Years?

• After 25 years, the investor can choose to withdraw only the interest without disturbing the principal corpus.
• Annual Interest Earned: ₹8,59,001
• Monthly Tax-Free Income: ₹60,989

💸 How to Maximize PPF Returns?

• Always invest before April 5 every financial year.
• Extend your account in blocks of 5 years after maturity.
• Avoid early withdrawals to enjoy compounding interest.

⚠️ Disclaimer

Note: The above calculations are based on an estimated interest rate of 7.1%. Interest rates may change as per government policy. Consult a financial advisor for accurate planning.