PPF account will give tax free pension of ₹ 60989 every month: Read the calculation chart

Pension through PPF Account:  PPF account can make any investor a millionaire in just 25 years, and if invested for 35 years, ₹2.27 crores can be raised with the help of a PPF account, but today we are telling you that you can also get a regular pension of ₹60989 per month after retirement from a PPF account. So read on and find out how...

Your PPF account can also get you a pension of around ₹61000 every month...

PPF account, i.e. Public Provident Fund Account, or Lok Pratishtha Nidhi Account or Public Provident Fund Account - every employed person has heard this name at some time or the other, and many Indians have also opened an account under the PPF scheme. PPF is the most popular of the small savings schemes run by the Central Government to provide an opportunity to save for the future and earn completely tax-free interest, and if regular investments are made in a disciplined manner, it can definitely make you a millionaire on retirement.

Today we will tell you that with a PPF account, you can also get a regular pension of ₹60989 per month after retirement. So keep reading, and know how...

There is no tax ever on EEE category scheme PPF

First of all, it will be good to know the important and beneficial things about PPF, so, first of all remember that the amount deposited in the PPF account every year is exempted from income tax, the interest you get every year on this account is also not taxable, and the entire amount received at the time of maturity is also not subject to income tax.

Where and how to open a PPF account...?

Any Indian can open an account in the very popular savings scheme PPF by going to any post office or any branch of any bank, in which the account holder has to deposit a minimum of ₹ 500 and a maximum of ₹ 1,50,000 during every financial year (1 April to 31 March).

How will a PPF account make you a millionaire in 25 years...

Now let us tell you how to arrange a pension of approximately ₹61000 per month on retirement. If you are 35 years old, and you open a PPF account at the beginning of this financial year and deposit ₹1,50,000, then on March 31 next year, ₹10,650 will be added to your PPF account as interest, because at present the Narendra Modi government at the Center is paying interest at the rate of 7.1 percent on the amount invested in PPF. Due to this interest, on the very first day of the next financial year, i.e. April 1, 2025, a balance of ₹1,60,650 will appear in your PPF account, which will become ₹3,10,650 if you deposit ₹1,50,000 before April 5 in the new financial year. After this, on March 31, 2026, the interest at the same rate will be ₹22,056, and the balance will become ₹3,32,706. Now you, i.e. the PPF investor, have to deposit ₹1,50,000 in your PPF account every year between 1 and 5 April. In this way, with the help of disciplined investment, at the time of maturity, i.e. after 15 years, you will see ₹40,68,209 in your PPF account, out of which ₹18,18,209 will be the interest amount, and your original investment would have been ₹22,50,000.

If you opened a PPF account at the age of 35, then at the time of maturity you will be 50 years old, but there are still 10 years left for retirement. As per the rules related to PPF account, you can extend your PPF account in blocks of 5 years by applying before maturity. The extension available for five years each can be availed unlimited times. Now at the age of 50, you extend your account, and maintain the annual routine of investment. Now your PPF account will be on the verge of maturity when you will be 55 years old. At that time, ₹66,58,288 will be visible as deposit amount in the PPF account, in which ₹36,58,288 will be as interest, and your investment will be ₹30,00,000.

Now extend the PPF account once again, and keep investing every year as before, because your journey of becoming a millionaire and earning a monthly pension of ₹61000 will just begin. This time after five years, when your PPF account matures, you will be 60 years old, and the total amount in your account will have crossed the figure of one crore. At that time, a total of ₹1,03,08,014 will be deposited in your PPF account, in which your investment would have been ₹37,50,000 and the government has added ₹65,58,015 to your account as interest.

How will monthly pension of ₹60989 be arranged from PPF account...?

Now read another rule related to extension of PPF account. Whenever you extend your PPF account, you have two options. One - Investment will continue after extension. Two - Investment will not be made after extension. Till now you have extended your account twice, but did not stop investing, so the amount kept increasing very fast. But now after retirement, investing will not be easy and convenient, so now the time has come to get pension without making new investment.

You will get interest of ₹ 7,31,869 without making new investment in PPF account...

So, now you will not make any new investment this year, but will continue the account. So, this time the accumulated deposit will also remain ₹1,03,08,014, and the interest on it at the end of the year will be ₹7,31,869. Here we are assuming that the interest rate which is prevailing today will remain the same.

Now know another rule about withdrawal of money from PPF account. When you choose to extend the PPF account without investing, you get the right to withdraw money once in a financial year. All you have to do is withdraw only the interest amount every year, that is, now you can withdraw only this year's interest amount of ₹ 7,31,869 from your PPF account and deposit it in your savings account. This amount is your pension, if you divide it in 12 months, then you can keep spending ₹ 60989 every month.

Another interesting fact worth remembering is that despite this withdrawal, your accumulated amount in the PPF account will remain ₹1,03,08,014, and next year you will be able to withdraw the interest earned on it, ₹7,31,869. The most beneficial information in this withdrawal is that the interest amount withdrawn every year will be completely tax free, meaning you will never have to pay income tax on this amount.