PPF for Regular Income: How to earn over Rs 78,000/month tax-free with Public Provident Fund?
The Public Provident Fund (PPF) is a government-backed savings scheme offering guaranteed returns and tax-free income. By investing strategically, you can build a substantial corpus and earn over Rs 78,000 per month tax-free.
The Public Provident Fund (PPF) is one of the safest investment options in India, offering guaranteed returns, tax benefits and long-term wealth creation. With a strategic investment approach, PPF can generate a steady, tax-free monthly income of over Rs 78,000, ensuring financial stability post-retirement. By maximising contributions and extending the account beyond maturity, investors can build a multi-crore corpus while enjoying tax-free interest earnings. Read on to discover how to leverage PPF for a secure, passive income stream.
What is PPF?
PPF is a safe, long-term investment scheme backed by the government, offering fixed interest and tax benefits under Section 80C. It is ideal for salaried employees, business owners, and even minors (through guardians).
PPF interest rate & current returns
- The current interest rate on PPF is 7.1% per annum.
- The government revises the rate quarterly, but it generally remains stable over time.
Minimum and maximum investment in PPF
- Minimum deposit: Rs 500 per year.
- Maximum deposit: Rs 1.5 lakh per year.
- Depositing the maximum amount early in the financial year (April 1-5) helps maximize interest earnings.
PPF maturity period – When can you withdraw?
- Initial maturity period: 15 years.
- Extension available: In 5-year blocks (indefinitely).
- Investors can continue the account with or without new contributions.
Tax Benefits
- Investments (up to Rs 1.5 lakh/year) are tax-deductible under Section 80C.
- Interest earned is tax-free.
- Maturity proceeds are completely tax-free, making it one of the most tax-efficient investments.
Withdrawal rules
- Partial withdrawal is allowed after 5 years (once per financial year).
- Withdrawal limit: Up to 50% of the balance from the 4th preceding year or last year (whichever is lower).
How to earn over Rs 78,000/month tax-free with Public Provident Fund?
Rs 1,50,000/year investment for 15 years
- Invested amount: Rs 22,50,000
- Totak interest: Rs 18,18,209
- Maturity value: Rs 40,68,209
Rs 1,50,000/year investment for 20 years
- Invested amount: Rs 22,50,000
- Totak interest: Rs 18,18,209
- Maturity value: Rs 40,68,209
Rs 1,50,000/year investment for 25 years
- Invested amount: Rs 22,50,000
- Total interest: Rs 18,18,209
- Maturity value: Rs 40,68,209
Rs 1,50,000/year investment for 28 years
- Invested amount: Rs 22,50,000
- Totak interest: Rs 18,18,209
- Maturity value: Rs 40,68,209
Generating Rs 78,000 monthly tax-free income
- Interest in a year on Rs 1,31,80,178 corpus
- 7.1% of Rs 1,31,80,178
- interest in a year: Rs 935792.638
- Interest in a year on Rs 1,31,80,178 corpus
- interest in a month: Rs 77982.7198333
PPF benefits
- Risk-Free & Government-Backed – Zero risk of loss.
- Tax-Free Growth – Interest & withdrawals are tax-exempt.
- Flexible Investment & Withdrawal – Extend PPF indefinitely.
- Perfect for Retirement Planning – Guaranteed income for life.