PPF Query

Others 1390 views 3 replies

Lakshit Seth

DGM - Quality Systems

32 Points Joined February 2011

Dear Sir/Mam,
I opened a PPF A/c with SBI in February 2004 and when I opened the A/c I was told that the A/c would mature after 15 years and if I want I can further extend the maturity by 5 years.
But recently someone told me that the 5 year extension after the maturity period has been stopped and that I would have to withdraw my money after 15 years.

Kindly guide me as to what is the latest scenario now.

Also I would like to know that what is the maximum period by which I can extend the maturity of my PPF A/c (if any) ie for how many years after completing 15 years can I deposit money into my PPF A/c and earn interest on it and will I still get exemption from Income Tax as well

Regards
Laksh*t Seth

Replies (3)

Pankaj Arora

Learner

3134 Points Joined September 2009

HUF’S PPF A/C can not extend after 15 years but yes individual can extend PPF A/C after 15 years to next 5 years

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

As per Sec 9(3) of the PPF Scheme, at its maturity, the account can be continued for a block of 5 years. This facility is available for any number of blocks on expiry of each of the extended periods. The continuation can be with or without contribution. Once an account is continued without contributions for one year, the subscriber cannot change over to with-contributions extension. [Notification F.3(6)-PD/86 dt 20.8.86].

A subscriber, continuing his account with fresh subscripttions, can withdraw up to 60% of the balance to his credit at the commencement of each extended period in one or more installments, but only one per year.

On the other hand, in the case of account extended without contribution, withdrawals can be effected in installments, not exceeding one in a year. The balance will continue to earn interest till it is completely withdrawn.

No new account can be opened if the old one is in extended mode either with or without contributions [MOF (DEA) letter F.7/2/97-NS II dt 9.2.98].

Form-H is to be used to declare the intention of continuing the account with subscripttion for each extended period. It should be filed before the first contribution is made for the first year. In its absence, the account will be treated as without-subscripttion extension. Fresh contributions made to such accounts will enjoy neither the deduction u/s 80C nor the interest. [MoF (DEA) 7/21/88-NS-II dt 10.8.90]