PPF

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2010 I HAVE A PPF ACCOUNT FOR 15 YEARS. CAN I CONTINUE IT MORE THAN 15 YEARS.
IS THERE ANY TAXABILITY PROBLEM?

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

09 August 2010 Subject to the provisions of sub-paragraph (3) a subscriber may, on the expiry of 15 years from the end of the year in which the initial subscription was made but before the expiry of one year thereafter, may exercise an option with the Accounts Office in Form H, or as near thereto as possible, that he would continue to subscribe for a further block period of 5 years according to the limits of subscription specified in paragraph 3.

IN THIS PROCESS THERE WILL BE NOTHING TAXABLE

FOR BETTER UNDERSTANDING YOU CAN DOWNLOAD THE FILE FROM MY FILE SECTION.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

09 August 2010 Yes. The PPF account can be extended even after the expiry of 15 years. But the extension is available in a pack of 5 years. It can even be extended after the expiry of such pack of 5 years for another pack of 5 years..

The tax effect will remain the same....

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

09 August 2010
(3) Closure of account or continuation of account without deposits after maturity:- Notwithstanding the provisions of sub-paragraph (1), any time after the expiry of 15 years from the end of the year in which the initial subscription was made by him, a subscriber may, if he so desires, apply in Form C or as ‘near thereto as possible together with his pass book to the Accounts Office for the withdrawal of the entire balance standing to his credit and the Accounts Office, on receipt of such an application from the subscriber, shall subject to the provisions of sub-paragraph (4) allow the withdrawal of the entire balance (together with interest up to the last day of the month preceding the month in which the application for withdrawals made) after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him and close his account.

Provided that a subscriber may, if he so desires, make withdrawal of the amount standing to his credit, from time to time, in installments not exceeding one in a year.

(3A) Continuation of account with deposits after maturity :- Subject to the provisions of sub-paragraph (3) a subscriber may, on the expiry of 15 years from the end of the year in which the initial subscription was made but before the expiry of one year thereafter, may exercise an option with the Accounts Office in Form H, or as near thereto as possible, that he would continue to subscribe for a further block period of 5 years according to the limits of subscription specified in paragraph 3.

(3B) In the event of a subscriber opting to subscribe for the aforesaid block period he shall be eligible to make partial withdrawals not exceeding one every year by applying to the Accounts Office in Form C, or as near thereto as possible, subject to the condition that the total of the withdrawals, during the 5 year block period , shall not exceed 60 percent of the balance at his credit at the commencement of the said period.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now