💰 Tax Saving from PPF-

• 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:

(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.