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