If you're looking for a government scheme that offers tax exemptions and guaranteed returns, the Public Provident Fund (PPF) could be the best option for you. This scheme is not only safe but also provides investors with a strong long-term retirement fund. This government-backed scheme is completely risk-free and offers EEE (Exempt-Exempt-Exempt) tax benefits—meaning the investment amount, the interest earned, and the maturity amount are all completely tax-free. So, let's understand how to earn 2.88 lakh rupees annually from PPF. Let's understand the secret formula behind PPF.

Who can open a PPF account?
Any Indian citizen can open a Public Provident Fund account in their own name at a post office or any bank. This account can even be opened in the name of a minor, who is supervised by a parent or guardian.
It's important to note that only one PPF account can be opened in a person's name. There's no joint account facility. Therefore, if both husband and wife are working, they can open separate accounts in their own names. This provides a family with double the tax benefits and investment advantages.

How much interest and how much can one invest?
Currently, the government offers an annual interest rate of 7.1% on PPF. This interest is compounded annually. This means that every year you earn interest on your principal, and then interest is added on that interest, allowing your corpus to grow rapidly. The tenure of a PPF account is 15 years, which can be extended by 5-year increments.

In terms of investment, an individual can deposit a minimum of ₹500 and a maximum of ₹1.5 lakh per year. If both husband and wife open separate accounts, the family can invest up to ₹3 lakh annually.

How much interest and return will be earned?
Let's assume that you invest a maximum of ₹1.5 lakh per year in PPF for 15 years. After 15 years, you will receive approximately ₹40,68,209 upon maturity. Of this, approximately ₹18,18,209 will be earned solely from interest, meaning you will receive approximately 45% more return than you invested—all of which is completely tax-free.

How many times has demonetization occurred so far? Before PM Modi, this legendary Prime Minister also performed this astonishing feat; you will be amazed to know!

How many times has demonetization occurred so far? Before PM Modi, this legendary Prime Minister also performed this astonishing feat; you will be amazed to know!
Simply put, if you deposited ₹1.5 lakh every year in the Public Provident Fund (PPF) for 15 years, your maturity amount would be ₹40,68,209. If you leave this amount in your account, you'll earn an annual interest rate of approximately ₹2,88,842 at the current 7.1% interest rate. This means guaranteed annual earnings of lakhs of rupees without any new investment.

How can you earn lakhs of rupees in interest without making any new investments?

The most important thing about PPF is that even after completing 15 years, you can extend your account through Extension Without Contribution**, meaning you can extend it without making any new investments.

During this period, you'll continue to earn interest on the amount already deposited, meaning your corpus will continue to grow every year without any new investment.

For example, if you extend your account after 15 years and have accumulated ₹40 lakh, you can earn up to ₹2.88 lakh annually in interest alone—all without making a single rupee of new investment.

Why is PPF so special?

1. Tax-free returns—interest and maturity proceeds are tax-free.
2. Guaranteed returns—investments are completely secure at the government-determined interest rate.
3. Loan facility—loans or partial withdrawals are possible if needed.
4. Great options for retirement planning—steady and secure returns over the long term.

PPF Conclusion
Let us tell you that PPF is not just a savings scheme, but also a lifetime income source. By investing in it, you can not only save taxes but also build a strong financial security shield for retirement. If you understand the "Extension Without Contribution" formula, you can earn lakhs of rupees in interest every year without investing any additional money—all completely tax-free.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.