Are you trying to learn how to compute PPF in MS Excel? If yes, then this blog can come in handy. Read this blog to know everything you need to know about PPF calculations in Excel.
Can you Compute PPF in Excel: PPF, or public Provident fund, is one of India’s most prominent government-backed savings schemes. The government launched the PPF scheme to benefit small savers and offers guaranteed returns besides tax benefits because it falls under the exempt, exempt, exempt category. You would like to know how much your money will grow if you invest in PPF. To use the PPF calculator, you have to provide the data mentioned here:
Tenure Of The PPF Account
It should mention at least 15 years with the option of extension in blocks of 5 years.
Deposit Or Payment Frequency
It can be chosen as monthly, half-yearly, quarterly, and annually.
Deposit Amount
The amount will be deposited in the PPF account per the deposit frequency. It would be calculated automatically by the PPF calculator. If the deposit amount is above 1000, then the deposit frequency is monthly, and the total PPF deposit for the year 12 times.
Tips To Understand The Results
Opening Balance
It is the PPF account balance at the start of the year
Interest Earned
It is the calculated amount based on the account balance dial and the balance in the PPF account, which is to be compounded annually.
Closing Balance
It is calculated by adding the interest from your current year to the opening balance and the extra deposits for the year. After completing the 5th year from the date of your PPF account opening, you cannot get any loan, but you can be eligible for withdrawing partial money.
Withdrawal
Partial withdrawal from your PPF account is allowed after completing five years from your PPF account opening date. the maximum withdrawal amount is lesser of the following 50% of the account balance at the end of the previous year is calculated from the year in which the withdrawal was made. 50% of the account balance is at the end of the 4th preceding year in which the leave was opted for. The withdrawal amount provided by the PPF calculator is based on the assumption that the account holder has taken no withdrawal or loan in the past year.
PFF Calculation in Excel: Why Do You Need It?
It is easy to calculate ppf in excel, and you can get an estimate of the interest you can earn at maturity and the maturity value of the given investment amount. Some of the significant benefits are mentioned here. The investment time would also be mentioned.
- The PPF calculator allows you to get a clear idea of the number of interests that you can be earning with the sum investment amount and the investment town.
- You can also decide on the maturity term for the investment at your convenience. But you need to know that the minimum maturity timeline is 15 years which can be extended in the blocks of 5 years.
- PPF calculator will be your best bet, as you can use it for the tax planning stage.
Tips For Using The PPF Calculator in Excel
First, you need to download the PPF excel calculator:
You need to provide the existing balance if you already have a PPF account. For example, if it is ₹50,000 already.
You can provide the deposits you made in the month, like 10,000 in July
The interest calculated on PPF will be based on the amount you have invested in the past two months.
The formula for calculating interest equals the monthly interest rate into balance on or before the 5th day of the month divided by 100.
You can apply this formula with the example given above, which is INR 50,000, the monthly interest rate comes to 7.1% / 12, so it is equal to 0.5916%. So the monthly interest rate would be 0.5916% rupees, equal to 50,000 / 100, which is INR 3.73.
Hence after 15 years in PPF, you can constantly deposit ₹1.5 lakh every year on or before the 5th of April, and you can get the total maturity amount of Euros 49,743.76.
You need to know that you can have only one PPF account, so you should compute the interest well before deciding anything further.
Different Types of PPF Calculators
PPF Fixed Yearly Investment Calculator
You can easily compute the amount that you would be paid by the government towards PPF on an annual basis with the help of the PPF yearly investment calculator as the interest rate keeps on changing with time. You have to enter all the important details to get the desired amount.
PPF Variable Yearly Investment Calculator
You need to enter the details like the fiscal year and the deposit every year to get the variable yearly investment amount. Additionally don’t forget to enter the financial year where you would have opened the PPF account.
PPF Loan Calculator
This calculator helps you in understanding the permissible loan amount. You need to enter the balance in your account to get the accurate figure.
PPF Withdrawal Calculator
TPS contributors can also draw some amount of money at least once in the year from the PPF account provided they have completed 5 years in the PPF. It is from the end of the fiscal year in which the early deposits were made. The withdrawal form is available in the 7th year and you can compute the amount of withdrawal before and after the extension of the tool.
PPF Maturity Calculator
PPF maturity calculator helps you in computing the maturity time of your PPF amount especially for withdrawals.
Conclusion: Can You Compute PPF in Excel
Above all you can say that PPF is one of the best tools for investment and you should consider having this. You can check out the details mentioned above regarding the PPF calculations so that you can compute PPF amounts well.
If you are looking forward to learning about how you can compute PPF in excel then you are at the right place. The professionals at Vakilsearch can help you in every possible way here in every step of your legal help.
FAQ:
Who can use this PPF Calculator?
Anyone who wants to calculate the maturity amount of their Public Provident Fund (PPF) account can use a PPF calculator. It is a simple tool that helps you estimate the returns on your investment in a PPF account.
Where to open a PPF account?
You can open a PPF account at any authorized bank or post office in India. Some private banks also offer PPF accounts. You can also open a PPF account online through the websites of certain banks.
Who decides PPF Interest rate?
The Ministry of Finance, Government of India, decides the PPF interest rate. The interest rate is reviewed every quarter and is based on the prevailing market conditions.
What is the current PPF interest rate?
As of October 2023, the current PPF interest rate is 7.1% per annum.
What have been PPF Interest rates in the past?
The PPF interest rate has varied over the years. In the past, it has ranged from 12% in the 1980s to the current rate of 7.1%. The interest rate is subject to change every quarter based on market conditions.
How PPF account maturity is calculated?
The maturity amount of a PPF account is calculated based on the principal amount invested, the interest earned, and the duration of the investment. The interest is compounded annually, and the maturity period is 15 years. You can use a free PPF calculator to estimate the maturity amount of your PPF account.
What is the extension of PPF account?
After the maturity period of 15 years, you can extend your PPF account for a block of 5 years. You can continue to make contributions to the account during the extension period, and the interest rate will be the same as that of a regular PPF account.
What are the tax benefits of investing in a PPF account?
Investing in a PPF account offers several tax benefits. The contributions made to the account are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum of Rs. 1.5 lakh per year. The interest earned and the maturity amount are also tax-free. Additionally, the amount received on maturity is exempt also exempt from wealth tax.
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