PPF Account: There are three options to go for when your PPF account matures. PPF account matures on completion of 15 years from the end of the year in which the account was opened.
PPF Account: Saving money in Public Provident Fund (PPF) is one of the most long-term and risk-free way of investment. However, PPF account matures on completion of 15 years from the end of the year in which the account was opened. The interest earned in the PPF account is free from Income Tax under Section-10 of IT Act
The Central government has kept interest rates of small savings schemes, including that of Public Provident Fund or PPF, unchanged for the January to March quarter. If a Public Provident Fund matures in 15 years, it will fetch 7.1%. A minimum deposit of Rs 500 per year is required to keep the account active
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PPF account: Options to go for when your PPF account matures
- PPF balance withdrawal
- PPF account extension without investment
- PPF account extension with investment option
“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,” SEBI registered tax and investment expert Jitendra Solanki was quoted as saying in a report by The Mint.
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About Public Provident Fund (PPF): Key Points
According to the Public Provident Fund (PPF) Scheme guidelines, a subscriber cannot have more than one account. However, many people end up opening more than one PPF account.
- Minimum deposit Rs 500 and Maximum deposit Rs 1,50,000 in a Financial year.
- Loan facility is available from 3rd financial year upto 6th financial year.
- Withdrawal is permissible every year from 7th financial year.
- Account matures on completion of fifteen complete financial years from the end of the year in which the account was opened.
- After maturity, account can be extended for any number for a block of 5 years with further deposits.
- Account can be retained indefinitely without further deposit after maturity with the prevailing rate of interest.
- The amount in the PPF account is not subject to attachment under any order or decree of a court of law.
- Deposit qualifies for deduction under Sec.80-C of I.T.Act.
- Interest earned in the account is free from Income Tax under Section -10 of I.T.Act.
