Question 1

What is the current PPF interest rate and compounding frequency?

Accepted Answer

The PPF rate is 7.1% per annum for July–September 2026 (Q2 FY 2026-27). Interest is based on the lowest balance between the close of the fifth day and month-end and is credited annually. Small-savings rates are reviewed quarterly.

Question 2

What is the maturity period and extension rule for PPF accounts?

Accepted Answer

The statutory lock-in period for PPF is 15 financial years. After 15 years, the account can be extended indefinitely in blocks of 5 years with or without fresh contributions.

Question 3

How is PPF treated for income-tax purposes?

Accepted Answer

Eligible contributions can fall within the aggregate Section 123/Schedule XV savings ceiling under the alternative regime, while PPF interest and qualifying withdrawals have statutory exclusions. The contribution deduction is not available merely because a taxpayer uses the default regime.

Question 4

What are the minimum and maximum annual deposit limits in PPF?

Accepted Answer

A minimum deposit of ₹500 per financial year is required to keep the account active. The maximum allowable deposit is ₹1,50,000 per financial year across self and minor child accounts.

Question 5

Can partial withdrawals or loans be taken against a PPF account?

Accepted Answer

Loans and partial withdrawals are available only in the periods and subject to the limits in the PPF Scheme. A partial withdrawal is generally limited to 50% of the lower of the balance at the end of the fourth preceding year and the balance at the end of the immediately preceding year.

PPF Calculator

PPF Calculator (Public Provident Fund)

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