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Tax exemption on investments,earnings and maturity made PPF more attractive


Exemption on Investment, Exemption on Interest Earned and Exemption on Maturity which is also called Exemption-Exemption-Exemption (E-E-E) is one of the benefit one can avail from PPF.

PPF Tax Exemption

Exemption on Investment: You can claim Tax Exemption on Investments (Savings/Subscriptions) you have made towards your PPF Account. Section 80(C) permits upto Rs.One Lakh Savings. So you can benefit upto the maximum subscription of your PPF ( If you don’t have any other 80(C) related savings). Based on your tax bracket 10% to Maximum 30% of Tax Exemption you can show in your Income Tax Statement.

Exemption on Earnings: You need not to pay any tax on your cumulative interest earnings of your PPF Savings. If you compare this to the Fixed Deposits, Tax Exempted Bonds of Banks and other Financial Institutions, PPF become more attractive.

For Bonds and Fixed Deposits, you need to pay tax on interest you earned. You will get exemption only on the savings you have made on that year. After that you won’t be beneficiary .

Exemption on Maturity: After Maturity also you need not to pay any tax. You can take all your money.

As far as i know there is no such a scheme which provides complete tax exemption on three levels. So along with cumulative interest earned on your money, you will get 3 levels of tax exemption which gives you more value of your money.


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