Tax benefit on PPF investments

The amount deposited and interest earned on it (including interest during the extension period) is completely exempted from income tax under Section 10(11) and the entire deposit in the account is exempted from wealth tax.

The annual contribution upto Rs 70,000 is eligible for tax deduction under Section 80C. Tax deductions can also be claimed on contributions made during the extended period provided the option to continue is exercised within one year of expiry of 15 years (or the extended block period).