Tax Benefit of PPF | Tax Rebate Under PPF | PPF account offers EEE (Exempt, Exempt, Exempt)

What are Tax Benefits of PPF?

PPF account offers EEE (Exempt, Exempt, Exempt) tax benefit to the investors which means that:

  1. All the contributions made (maximum upto Rs 1.5 lakhs each financial year) can be claimed for tax rebate under Section 80C of the Income Tax
  2. The interest earned on the PPF account is tax free
  3. The maturity proceeds of the PPF account are exempt from tax

The interest earned on the PPF account should be mentioned on the income tax return.

It is noteworthy here to mention that the amount deposited in dependent spouse's or children's PPF accounts is eligible to claim tax benefit by you.

Many people deposit money in the Public Provident Fund (PPF) accounts in their name as well as in their minor child's name. They are not aware of the fact that despite having two different accounts (one in own name & another in minor child's name), the combined total investment in both the PPF accounts cannot exceed Rs 1.50 lakhs in a financial year.

PPF Interest Rates 2020-21

PPF account offers EEE (Exempt, Exempt, Exempt) tax benefit to the investors which means that:

  1. All the contributions made in PPF account(maximum upto Rs 1.5 lakhs each financial year) can be claimed for tax rebate under Section 80C of the Income Tax
  2. The interest earned on the PPF account is tax free
  3. The maturity proceeds of the PPF account are exempt from tax

The interest earned on the PPF account should be mentioned on the income tax return.

It is noteworthy here to mention that the amount deposited in dependent spouse's or children's PPF accounts is eligible to claim tax benefit by you.

In order to know the interest earned under PPF account, you can use PPf Calculator.

PPF Interest Rates

From YearTo YearInterest Rate
April 1986March 198712.00% (p.a.)
April 1987March 198812.00% (p.a.)
April 1988March 198912.00% (p.a.)
April 1989March 199012.00% (p.a.)
April 1990March 199112.00% (p.a.)
April 1991March 199212.00% (p.a.)
April 1992March 199312.00% (p.a.)
April 1993March 199412.00% (p.a.)
April 1994March 199512.00% (p.a.)
April 1995March 199612.00% (p.a.)
April 1996March 199712.00% (p.a.)
April 1997March 199812.00% (p.a.)
April 1998March 199912.00% (p.a.)
April 1999March 200012.00% (p.a.)
April 2000March 200111.00% (p.a.)
April 2001March 20029.50% (p.a.)
April 2002March 20039.00% (p.a.)
April 2003March 20048.00% (p.a.)
April 2004March 20058.00% (p.a.)
April 2005March 20068.00% (p.a.)
April 2006March 20078.00% (p.a.)
April 2007March 20088.00% (p.a.)
April 2008March 20098.00% (p.a.)
April 2009March 20108.00% (p.a.)
April 2010March 20118.00% (p.a.)
April 2011March 20128.60% (p.a.)
April 2012March 20138.80% (p.a.)
April 2013March 20148.70% (p.a.)
April 2014March 20158.70% (p.a.)
April 2015March 20168.70% (p.a.)
April 2016March 20178.10% (p.a.)
April 2017June 20177.90% (p.a.)
July 2017September 20177.80% (p.a.)
October 2017December 20177.80% (p.a.)
January 2018March 20187.60% (p.a.)
April 2018June 20187.60% (p.a.)
July 2018September 20187.60% (p.a.)
October 2018December 20188.00% (p.a.)
January 2019March 20198.00% (p.a.)
April 2019June 20198.00% (p.a.)