Public Provident Fund or PPF account is one of the most preferred long-term risk-free investment options among investors. Current PPF interest rate of 7.1 per cent is among the high yielding government-backed small saving schemes. For those investors, who want to make a corpus for higher studies of their child, marriage of girl child or for any other long-term investment goal, PPF is one of the most-favoured investment tools for those investors who have low risk-appetite. So, it becomes important for the PPF account holders to know the options available to them after the 15 years maturity period of PPF account. According to tax and investment experts, a PPF account holder has three options after the maturity of PPF account — PPF balance withdrawal, PPF account extension without investment and PPF account extension with investment option.
Speaking on options for PPF account holders after 15 years maturity; Amit Gupta, MD at CAG Infotech — a SEBI registered tax and investment solution company said, “PPF account has maturity period of 15 years and after the maturity period the PPF account holder is given three options — PPF balance withdrawal, PPF account extension without investment and PPF account extension with investment.
On PPF account extension SEBI registered tax and investment expert Jitendra Solanki said, “For extension of PPF account after 15 years maturity period, the PPF account holders needs to submit duly filled PPF Extension Form either at bank or at the post office (whichever applicable in the case of one’s PPF account). But, the PPF Extension Form has to be submitted in the 15th year of the PPF account opening and the form is required for submission only in the case of PPF account extension with investment option.”
Solanki said that in case, the PPF account holder wants to continue investing in one’s PPF account, then the PPF account holder needs to submit PPF Extension Form. If the PPF account holder is neither interested in PPF withdrawal after maturity period nor in further investing in the PPF account, then in that case he or she don’t need to submit PPF Extension Form as non-submission of the forms means PPF account extension without investment. In that case, the PPF account holder will continue to get the PPF interest on one’s PPF balance with income tax benefit as PPF falls under ‘EEE’ category where investment in PPF, PPF interest earned and the maturity amount is 100 per cent income tax exempted.
