PPF Scheme 2025: How a ₹1.5 Lakh Annual Investment Can Earn You ₹60,000 Monthly Tax-Free After Retirement

If you’re looking for a safe and tax-free investment option that guarantees steady income after retirement, the Public Provident Fund (PPF) Scheme 2025 is one of the best government-backed choices. With assured returns, high safety, and unmatched tax benefits, this long-term savings plan can help you build a strong financial cushion for your golden years.

What is the PPF Scheme and Why It’s So Popular

The Public Provident Fund (PPF) is a government-backed savings scheme designed to encourage long-term financial discipline . Open to both salaried and self-employed individuals, PPF can also be started by parents for their children.

• Minimum deposit: ₹500 per year
• Maximum deposit: ₹1.5 lakh per year
• Current interest rate: 7.1% (fixed by the Government of India)
• Lock-in period: 15 years

The scheme’s biggest attraction is its triple tax benefit under Section 80C of the Income Tax Act. Investments up to ₹1.5 lakh qualify for deductions, and both the interest earned and the maturity amount are 100% tax-free, making PPF one of the safest and most rewarding retirement savings plans in India.

How to Use PPF After Maturity

After the 15-year maturity period, the PPF account doesn’t have to end - you can extend it in two ways:

1. Extension with Contribution:

Continue the account for another five years and keep making yearly deposits. This option is ideal for those who want to grow their corpus further.

2. Extension Without Contribution:

A perfect choice for retirees, this option allows the account to continue earning interest without any new deposits. You can also make tax-free partial withdrawals each year, turning your savings into a regular monthly income stream.

How to Earn ₹60,000 per Month from PPF

Let’s break it down.
If you invest ₹1.5 lakh every year for 15 years at the current 7.1% interest rate, your total maturity amount will be around ₹40.68 lakh.

After maturity, if you choose the extension without contribution option, the balance will continue to earn interest. You can withdraw ₹7.2 lakh annually, which translates to about ₹60,000 per month — and the best part is, this income is completely tax-free.

Expert Tip: To maximise returns, make your annual investment between April 1 and April 5, as interest is calculated on the lowest balance between the 5th and the end of each month.

Partial Withdrawal Rules

While PPF is a long-term scheme, it offers flexibility when you need funds:

• Withdrawals allowed after 5 years from the end of the financial year in which the account was opened.
• You can make one partial withdrawal per financial year.
• The maximum withdrawal is up to 50% of the account balance at the end of the 4th year or the previous year, whichever is lower.

This feature makes PPF a safe and liquid investment while still ensuring steady growth.

Why PPF is the Best Retirement Investment in 2025

• Government-backed safety ensures zero risk.
• Tax-free interest and maturity make it more profitable than fixed deposits.
• Flexible withdrawal rules support both long-term goals and emergency needs.
• Compounding returns help your money grow steadily over time.

The PPF Scheme 2025 is not just a savings tool - it’s a complete retirement plan. With just ₹1.5 lakh investment per year, you can build a tax-free monthly income of ₹60,000 after retirement. For those seeking safe, assured, and tax-efficient returns, PPF remains one of the most powerful investment options in India.