PPF Deposit Limit and Tax Benefits: What You Need to Know

Updated Oct 26, 2026 Saral Jankari Team

How much you can deposit in PPF each year, what happens to extra money, and how PPF is taxed: the deduction, the tax-free interest and the tax-free maturity.

Two questions come up again and again about PPF: how much can I put in each year, and how is it taxed? This guide answers both in plain words.

The key points

You must deposit at least ₹500 in every financial year to keep the account active.
The most you can deposit in a financial year is ₹1,50,000.
Deposits must be in multiples of ₹50.
Interest earned and the amount you receive at maturity are not taxed under current rules.
The deduction for your deposits is available only if you choose the old tax regime.

How much can you deposit?

Minimum in a financial year	₹500
Maximum in a financial year	₹1,50,000
Deposit amounts	Multiples of ₹50
How you can deposit	In one lump sum or in instalments

The financial year runs from 1 April to 31 March. The limit applies to the whole year, not to each month. You can pay the full amount at once or spread it out, as long as the total stays within ₹1,50,000.

The rule for a minor’s account

A parent or guardian can open a PPF account in the name of a minor child. The ₹1,50,000 limit is combined: your deposits in your own account and in the minor’s account together cannot be more than ₹1,50,000 in a year. Opening a second account does not double the limit.

What if you deposit more than the limit?

Any amount above the yearly limit earns no interest and gets no tax benefit. The excess is returned to you. It is better to keep track of your total so that you do not park extra money for no reason.

What if you miss a year?

If you do not deposit the minimum ₹500 in a year, the account becomes inactive. It can be revived by paying the minimum for each missed year plus a default fee for each year. Your balance continues to earn interest while the account is inactive, but you cannot take a loan or make a withdrawal until it is revived. Check the current fee with your bank or post office.

How PPF is taxed

PPF is known as an EEE scheme, which means the money is exempt at all three stages:

When you invest: your deposits can be claimed as a deduction, up to ₹1,50,000 a year, but only under the old tax regime.
While it grows: the interest credited to your account each year is not taxed.
When you withdraw: the money you receive at maturity is not taxed.

Old regime or new regime?

The deduction for PPF deposits was available under Section 80C of the Income-tax Act, 1961. From 1 April 2026, the new Income-tax Act, 2025 applies, and the corresponding rules for this deduction are under Section 123. Whatever the section number, the position is the same: you can claim the deduction only if you choose the old tax regime. If you choose the new regime, you get no deduction for deposits, but the interest and the maturity amount remain tax-free.

The ₹1,50,000 deduction limit is shared with your other eligible investments and payments, such as EPF, life insurance premiums and tax-saving fixed deposits. If those already use up the limit, extra PPF deposits will not reduce your tax further, although they will still grow tax-free.

Which regime saves you more tax depends on your income and other deductions, so it is worth checking with a tax professional before you decide.

Keep reading

Sources

Last checked: 27 October 2026. Tax rules and section numbers can change with each Budget, so confirm the latest position with the Income Tax Department’s website or a tax professional before you file. This guide is general information, not tax or financial advice.