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Public Provident Fund (PPF) has long been one of India’s most reliable long-term investment options, especially for individuals who prefer stable and low-risk returns. For decades, PPF has played a central role in retirement planning and financial security because it helps investors build a sizeable corpus over 15 years without worrying about market volatility. But after the introduction of India’s new income tax regime, a common question has emerged:
If Section 80C deductions are not available under the new system, is investing in PPF still worthwhile?

Financial experts believe the answer is yes—and for reasons far beyond just tax savings.

PPF Still Makes Sense Even Without 80C Benefits

Under the old income tax regime, contributions to PPF were eligible for deductions under Section 80C. This allowed taxpayers to reduce their taxable income while simultaneously securing their financial future.
However, the new tax regime does not allow Section 80C deductions, meaning PPF investments no longer offer upfront tax benefits.

Despite this, experts maintain that PPF remains a highly beneficial product. Even for taxpayers who have switched to the new regime, PPF continues to offer a combination of stability, guaranteed returns, and long-term wealth creation. The absence of 80C deductions may reduce one advantage, but it does not diminish the scheme’s overall appeal.

PPF is particularly useful for planning large future expenses—such as children’s higher education, marriage, or retirement—because the investment horizon forces disciplined savings over 15 years.

Stable Returns Without Market Risk

One of the biggest attractions of PPF is its immunity from stock market fluctuations. Unlike mutual funds or equity-linked products, PPF returns remain unaffected during market ups and downs. Investors have full clarity about how much they will accumulate if they invest a fixed amount every year.

The government reviews and announces interest rates quarterly. Currently, PPF offers an annual interest rate of 7.1%, which is credited to the investor’s account every year on 31 March. Although this rate may change periodically, the returns are considered safe, predictable, and government-backed.

This makes PPF ideal for risk-averse investors or anyone looking to balance a portfolio with at least one guaranteed-return product.

PPF Falls Under the Highly Attractive EEE Tax Category

Another major advantage of PPF lies in its tax-friendly structure. PPF is among the very few investment options in India that enjoy the EEE (Exempt-Exempt-Exempt) tax status:

• Investment amount is tax-free

• Interest earned is tax-free

• Maturity amount is completely tax-free

This triple-exemption status significantly enhances the effective returns on investment, even without Section 80C deductions under the new tax regime. Additionally, since PPF is backed by the Government of India, it is considered one of the safest investment avenues available.

How Much Can You Accumulate in 15 Years?

A disciplined investment approach can help you build a strong financial cushion through PPF. For example:

If you invest ₹60,000 per year, your PPF account can grow to approximately ₹16,27,284 in 15 years at the current interest rate.
This lump sum can support major financial goals such as:

• Children’s higher education

• Marriage expenses

• Healthcare or emergency needs

• Retirement planning

Many individuals also use PPF to diversify their long-term portfolio because it balances the riskier segments such as equities or mutual funds.

Final Verdict: Should New Tax Regime Users Choose PPF?

Absolutely. Even though Section 80C benefits are no longer available under the new income tax regime, PPF still stands out as a secure, long-term investment option offering:

• Guaranteed returns

• Complete tax exemption on maturity

• Freedom from market volatility

• Government-backed security

• A disciplined savings structure

If your priority is stable, low-risk wealth creation over 15 years, PPF remains one of the most dependable financial tools—regardless of which tax regime you follow.