8 Oct, 2025
💰 Tax Saving from PPF-
Financial Tips
  • Section 80C Deduction:
    • You can claim up to ₹1.5 lakh per financial year under Section 80C of the Income Tax Act.
    • This means if you invest the maximum ₹1.5 lakh in PPF, your taxable income reduces by ₹1.5 lakh.
  • Tax Slab Impact: The actual tax saved depends on your income tax slab:
Income Tax SlabMax Tax Saved (if you invest ₹1.5 lakh in PPF)
5%₹7,500
10%₹15,000
20%₹30,000
30%₹45,000

(Excluding cess and surcharge for simplicity)

  • EEE Status (Exempt-Exempt-Exempt):
    • Investment: Deduction under 80C (up to ₹1.5 lakh).
    • Interest Earned: Fully tax-free (currently 7.1% p.a.).
    • Maturity Amount: Entirely tax-free after 15 years.

So, PPF is one of the rare instruments where contribution, interest, and maturity are all tax-exempt.