Income Tax
PPF (Public Provident Fund)
Government-backed 15-year savings scheme with 7.1% tax-free returns — EEE tax treatment.
Full Definition
Public Provident Fund (PPF) is a government-backed savings scheme with a 15-year lock-in period (extendable in 5-year blocks). Current interest rate: 7.1% per annum (reviewed quarterly). PPF has EEE (Exempt-Exempt-Exempt) tax treatment: contribution eligible for Section 80C deduction; interest earned is tax-free; maturity amount is tax-free. Maximum annual contribution: ₹1.5 lakh. Partial withdrawals allowed from the 7th year. PPF is available in post offices and select banks.
More Income Tax terms
ITR (Income Tax Return)
Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.
AY (Assessment Year)
The year in which income earned in the previous financial year is assessed and taxed.
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
PAN (Permanent Account Number)
Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.
TAN (Tax Deduction Account Number)
10-character number required by entities that deduct or collect tax at source (TDS/TCS).