PPF Pension Fund Calculation: How to Get Rs 40,000 Tax-free Monthly Income, Removing Rs 93 lakh Corpus to 56

PPF calculation: Public Provident Fund (PPF) is a long-term small savings program that is often used in the retirement corpus. However, if people invest in fixed income plans regularly for a long time, they can earn a lot of monthly income from the plan. They can also build a corpus that can be used by themselves or passed to children. If people use the full limit of Rs 1.5 lakh investment in the PPF's fiscal year, they can withdraw their tax-free lifetime incomes of over Rs 39,000 and withdraw their retirement corpus of nearly Rs 93,000,000 at the age of 56. Know how it serves you!

How to invest in PPF

A person can open a PPF account at the bank or post office with a minimum deposit of Rs 500. They need to deposit at least that amount to continue their PPF account.

Tax exemption status of PPF program

The interest earned and PPF investments created by the corpus are tax-free.

Under Article 80C of the Income Tax Act, the old tax system could also provide tax benefits to PPF deposits up to Rs 150 crore.

PPF interest rate and maximum investment

The PPF rate is 7.1% per year.

The highest investment in a year is Rs 1.5 lakh.

A fiscal year can be invested monthly or monthly.

The amount of interest will be attributed to March 31 of each fiscal year.

To obtain the maximum PPF interest benefit, an investment of Rs 1.5 lakh is required from April 1 to Rs 5.

PPF account maturity

The expiration period of PPF accounts is 15 years.

Once completed, the account holder can withdraw the entire corpus or expand the account to 5 years with or without deposits.

In either case, they will continue to be interested. Banks and post offices offer unlimited expansion for 5 years.

In an extended account with deposit, evacuation can be performed once per fiscal year, but the maximum is 60% of the balance credit at maturity of 5 years.

How to get a corpus of Rs 155 crore

To this end, investors will invest Rs 1.5 lakh per fiscal year over 15 years.

In 15 years, the total investment will be Rs 22,50,000, with an estimated interest of Rs 18,18,209 and an estimated corpus of Rs 40,68,209.

Now, we will make 3 5-year 3-year expansions and invest Rs 1.5 lakh annually between April 1 and 5.

PPF Corpus 30 Years Later

In 30 years, the total investment will be Rs 45,000,000, with an estimated interest of Rs 1,09,50,911 and an estimated corpus of Rs 1,54,50,911.

60% quit smoking (valued over Rs 9.2 lakh)

At this stage, if we withdraw 60% of the corpus, the withdrawal amount will be Rs 92,70,546.6 and the estimated balance will be Rs 61,80,364.4.

Corpus 31 years later

If we let the corpus grow for one year, the estimated corpus will be Rs 66,19,170.27 in one year and the estimated interest is Rs 4,38,805.8724.

How to exceed Rs 39,000/monthly income

If you only get interest from this corpus per year, the estimated amount will be 4,69,961.09, equal to Rs 39,163.42.

in conclusion

If investors start investing in PPFs at the age of 25, they can achieve these goals by the age of 56.

(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)