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.
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:
This feature makes PPF a safe and liquid investment while still ensuring steady growth.
Why PPF is the Best Retirement Investment in 2025
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.
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.
Next Story