CA Sandeep Kanoi

CA Sandeep KanoiWe have to initially open the Open the PPF account for 15 years and after the initial period of 15 years is over, one can keep on extending the deposit for a period of 5 years at a time. In fact, this is where the magic of PPF begins. One need not start a fresh PPF account and continue it for all of 15 years — just extend the old one for five years at a time, indefinitely. This way, the same PPF account offers additional liquidity to what is offered during the initial term.

Overall, then, after the initial 15-year period, you can convert your PPF investment into a 5-year deposit that offers tax-free interest, tax saving under Sec. 80C and immense liquidity —- and all this for your lifetime. Now, let’s briefly examine the rules of extension.

The PPF account can be continued (after the term of 15 years) either with or without further subscription.  The rules for contribution to the extended account remain the same as during the 15-year period. Once the choice is made for a block of five years, it cannot be changed.The only thing that investors should be careful of is that once an account is continued without contribution for any year, the subscriber cannot change over to with-contributions extension. [Notification F.3(6)-PD/86 dt 20.8.1986].

The choice to extend the PPF account with subscription has to be made within one year from the maturity of the account. If this is not done, then by default the account is deemed to have been extended without further contribution for a period of five years.

Coming to liquidity, an investor, continuing his account with fresh subscriptions, can withdraw up to 60% of the balance to his credit at the commencement of each extended period in one or more instalment, but only one per year.

(Notification F.7/2/97-NS IIdt. 9.2.1998). For example, say the term of your PPF account is ending on March 31, 2014. The balance at that time in the account is say Rs 15 lakh. Now, you may opt to continue the account for 5 more years (i.e. till March 31, 2019) and invest regularly as you have been.

However, over the period of five years till March 2019, you may withdraw only Rs 9 lakh which is 60% of the balance standing to your credit on March 31, 2014.

But, what if you wish to continue but not invest further? In other words, you may wish to earn the tax-free interest but may not wish to commit further funds. That, too, is possible.

In case the account is extended without contribution, any amount can be withdrawn without restrictions. However, only one withdrawal is allowed per year. The balance will continue to earn interest till it is completely withdrawn

(Clarification 7 to Clause 9(3A) of the PPF Scheme, 1968).

Form: The investor has to submit Form H at the post office or bank where the account is held if he intends to continue with the subscription. The form is available at http://www.indiapost.gov.in/pdfForms/PPFContinuation.pdf.

Related Posts-

All about PPF and Income tax benefit

PPF Account -Frequently Asked Questions

All about Public Provident Fund Scheme (PPF)

(Republished with Amendments)

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50 responses to “How to extend PPF account beyond 15 years”

  1. Sandip says:

    can I still close my PPF a/c after extending for 5 years . My 15 years period is over & have once withdraw some money . But now I want to close & have some years (4) pending (extension years) can I close Please let me know

    • Gokul Singh says:

      Can I withdraw 90% of my total contribution in my PPF A/c. even after completion of 15 years plus 3years completion period i.e,(15+3)yrs. against extended 5years.

  2. Subhash saini says:

    Is there any limit of period for extension of PPF after maturity. IE is there any grace period for extending PpF Account

    • shankar says:

      I opened a ppf ac in 1987 and renewed it in 2002 for 5 years till 2007. Thereafter i forgot to renew for 10 years till 2017. Now i want to renew it for further 5 yrs but system in bank is not accepting renewal. Pl advice as autorenewal should have taken place as mentioned by you in rules.

  3. Nisha says:

    Immediate reply awaited

  4. Nisha says:

    Reply is requested till evening ,so that PPF account can be operated and active tomorrow.Sincere Regards

  5. Nisha says:

    No want to continue PPF account.

  6. Nisha says:

    If ppf account is matured in April 2015. Contribution not paid in Financial year 2015-16.Want to pay contribution for FY 2015-16 with fine now ie 150050 by cheque Also, want to pay full subscription for 2016-17.
    Kindly note that subscription paid till March 2015.The account has not been extended for 5 years.
    Do not want to close PPF Account.Advise all formities.Want to fulfil tomorrow.So that there is no default.Kindly reply today.

  7. vijay bothara says:

    How many times ppf account may extend after 25 years

    • MANIK LAL GHOSH says:

      I have opened a PPF account & continued to deposit for 15 years upto 31.03.2013, then it is extended further period of 5 yrs. and it is maturing on 31.03.2018. My question is whether I can extend further more.

  8. Sunny says:

    I have a PPF Account in Bank of baroda. It matured on 31.3.10.

    I had opted for ‘Continue With further contributions’. Now it matured on 31.3.15.

    I want to now opt for ‘Continue Without further contributions’ which should be automatic (without filling any form)

    But the branch says that since i have not filled Form H, my account will be discontinued from 31.3.16 & i have to compulsory withdraw.

    What should i do now?

  9. BIJAY GUPTA says:

    After extension of account if we deposited amount in account, But we need to close the account. Is it possible to close it and withdraw complete balance till now

  10. BIJAY GUPTA says:

    sir hoe many time we can extend for 5 year my ppf a/c after 15 year

  11. Manish Buchha says:

    After extension of account if we deposited amount in account, But we need to close the account. Is it possible to close it and withdraw complete balance till now?

  12. SREENIVASULU REDDY says:

    Thank you sir. This is very useful clarification to the PPF account holders.

  13. swastik says:

    I want to withdraw the entire amount in my PPF account on maturity less any minimum amount that is required to extend the period for a further 5 years.
    Is this possible?

    Lets say the balance at the end of 15 years is 8 lakhs, and i want to withdraw 7.5 lakhs, and extend the PPF account for a further 5 years with contribution option.

    Can I do this? what’s the minimum that i have to keep in the account to extend it?

    • Veeramani S says:

      THE PUBLIC PROVIDENT FUND SCHEME, 1968

      (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 per cent of the balance at his credit at the commencement of the said period.

  14. pawan kumar singla says:

    Dear sir,
    I opened PPF a/c in 1992 and had extended for 5 years in two multiples upto 25 years which will get due on march 2017 i further want to extend it for 5 years i.e.upto 2022
    during these years i have not withdrawn any amount nor taken any loan against the amount deposited in a/c request you to kindly suggest me how can i get the account extended further .

  15. deepakkathuria says:

    dear sir

    with reference to the above, there are queries of various persons , but not a single reply is reflected
    i am not able to understand this?

  16. Prem Kumar Gupta says:

    Sir
    I had opened PPF A/C in April 1996 and maturity was 31.03.2012 I extended for further 5 years for how many times I may extend this A/C
    P K Gupta

  17. B M Mandal says:

    Dear Sir,

    I opened PPF A/c on 04-10-2012, after completion of 15 yrs what would be the actual maturity date? when I can withdraw entire sum assured from my A/c. If I would like to continue the same by approach the legal procedure of further extension for 5 yrs, there shall contribution(s) be accepted or not?

    Please advice me relating to above context.

    B. M Mandal

    • Devendra says:

      As per PPF rule. Your account will mature on 31-3-2028.
      It means you will invest in your PPF for 16 years. You can extend your account block of 5 years within 1 year in which your account matures.

  18. ASHWINBHAI PATEL says:

    I HAVE OPENED PPF A/C IN MARCH 1991 ACCORDINGLY AFTER COMPLITITION OF 15 YEARS, EXTENDED FOR FURTHER 5 YEARS SUBSEQUENTLY FOR FURTHER 5 YEARS ALSO, THAT MEANS ON 01/04/16 A/C WILL BE COMPLITING 25 YAERS.

    1 MY QUESTION IS, HOW LONG CAN I CONTINUE PPF A/C & WHAT I HAVE TO DO FOR THIS?
    2 AT WHAT TIME I CAN WITHDRAW THE AMOUNT IF?

  19. SUVAJIT BISWAS says:

    IF A PPF A/C MATURED ON 31/03/2014 AND IT IS CLOSED ON 10/10/2014. THEN WILL THERE BE ANY INTEREST ON PRINCIPLE AMT i.e. ON THE AMOUNT OF 31/03/2014 FOR THE PERIOD OF 6 MONTHS i.e. FROM 01/04/2014 TO 30/09/2014? IF ANY INTEREST WILL BE GIVEN THEN WHAT WILL BE THE INTEREST RATE @ 8.7% OR ANYTHING ELSE?

  20. P K SINHA says:

    Sir,
    After 15 yrs operation of my PPF , 5 yr extension has been accepted . Now I again want to extend for next 5 yr .Is it possible ? Bank asks not possible for further extension . Pl suggest.

  21. Lalita says:

    Dear Sir,

    I have opened PPF a/c on 20-08-1999 in post office, the a/c will mature on 30-03-2015. Now Post master neither accept to contribution nor cancellation of my PPF a/c. But Iam not having interest to continue the same a/c for another 5 years. Hence I need help for you for simultaneously cancel old account and open an nes a/c.

    Yours faithfully

    Lalita G
    Sindhanur- 5841218

  22. ashok kumar arora says:

    can i open a o/d a/c against ppf my ppf a/c is 16years old depositing regularly other wise how much i can withdraw from ppf

  23. Shirish Sadanand Shanbhag says:

    It is pitiable condition, that there are several queries pending for more than three years, unanswered in this section.

    I am giving you herewith reply, which will satisfy almost all the queries.

    If you have opened your PPF Account on 3.4.2004, then find your date, which fits in the financial year. This date fits in financial 1.4.2004 to 31.3.3005. Therefore, account opening financial year is 2004-2005. Add 15 to it. 2004+15=2019. Therefore, this account will mature, at the end of financial year, 2019-2020. Therefore, this account will mature on 1.4.2020.

    If you want to continue this account by depositing yearly subscription, then within one financial year after its maturity, you have to submit
    Form-H to the Bank or Post Office, where your PPF Account is maintained. In above case, you have to submit Form-H, from 1.4.2020 to 31.3.2021. When you submit your Form-H, your PPF Account stand extended till 31.3.2025 (five financial years)

    If you do not submit your Form-H within one financial year, as examplified above, then you cannot extend your PPF account with yearly contribution, at any time. In such case, if you have made any deposits, then bank will refund your deposits without any interest, and any tax rebate that you have availed of, under 80-C, you have to pay the tax to the Government with due interest.

    Onus of extension of PPF Account after its maturity lies with account holder. Therefore, if by mistake, when account holder has not submitted his Form-H, and makes deposit in his PPF Account, and by mistake bank has accepted the PPF deposit, and later on bank realises its mistake (even after some years), it will rightly refund it to Depositor, and deduct the interest paid on such wrongly accepted deposits.

    For any further queries on your PPF Acccount you may refer your queries to me, on my Email ID : s.s1954@rediffmail.com

    Shirish S. Shanbhag, Mumbai-400089. Dated: 31.7.2014

    orm-H

  24. Rajender Kumar Darak says:

    My ppf account was opened in 1991 and matured after 15 years in 2006 but i have forgoten to extend and the bank is continusly accepting the deposits from 2006 to till year i.e 2014 so my account is aumatically extended or not please clarify me

  25. Er R K Singla says:

    Dear Sir
    My problem for extending PPF a/c was posted on 1-7-2014 but has not been replied specifically.It is again requested to look into the matter and advise accordingly:-
    My PPF a/c matured on 31-3-2013 but I deposited contribution towards PPF in May 2013 & bank accepted the same. Again in May 2014, bank accepted my subscription towards yearly PPF contribution.I forgot to extend PPF a/c to which bank says should have been done within one year. Now bank says to withdraw whole of the amount deposited in my a/c. I don’t want to withdraw this amount & want to continue with this PPF a/c.
    Kindly advise in ref to notifications of G.O.I. in this regard .
    R.K. Singla
    Mob:09501111805
    Bathinda

  26. R K Singla says:

    Dear Sir
    My maturity date of PPF a/c was 31-3-2013.I contributed my subscription in this a/c in june-2013 and again in May-14 and bank accepted it,but I forgot to extend it beyond 31-3-2013, nor bank asked me to do so.I want to continue with this fund but bank is asking me to withdraw whole amount as it has not been formally got extended.Kindly let me know what to do.
    With regards

    R K Singla
    Bathinda(Pb.)

  27. Kashinath Chavan says:

    My PPF A/c was matured on 31st March 2013. Thereafter I forgot to apply for extension but I have already contributed in April 2013 and bank has also accepted the contributions on such occasions without submitting Form – H. What to do the bank is not ready to close the PPF account and i want to withdraw my full amount.

  28. Deepak Shah says:

    Sir,
    My ppf a/c is 25 years old..the wl mature on 1/4/2015
    After 15 years I hv already extended for twice.
    Now onwards can I extend the same a/c after 25 years or not?
    If no can I continue the same a/ c for interest purpose and go for new a/c

    Deepak Shah
    Cell no. 9909010370

  29. S C GUPTA says:

    My PPF A/c was extended upto 31st March 2013. Thereafter I forgot to apply for extension but I have already contributed in April 2013 and April 2014 respectively and bank has also accepted the contributions on both the occasions. What shallbe the implications and what should I do?

  30. suman dwivedi says:

    My ppf maturity is within 1yr.iwaxt to cntinue after receiving maturiy amt.is it popible that matured amt. Can b paid by banker/p.o.after leaving certain amt.in sme a/c
    nf ppf.what benefit will b there n how long for v may continue?pl.inform in easy lang.

  31. atul thakkar says:

    My ppf ac matured on 31/03/14 I deposited pppf amount on 02/04/14 bank had accepted the same but now bank is dening to renue ac.they r telling to close ac.can I renue ac? If not can I continue this ac.without further investmen?

  32. Rajender Kumar Darak says:

    I have opened my ppf a/c in sbi in 1991 since then i am continuosly depositing every year now they are saying it is entendable from 15 year of completion i.e2006 for only once for 5 year i.e 2011 and asking for closing my account is it right that ppf account is extedable for one time for 5 years or can i continue the account longlife

  33. parag says:

    my ppf a/c had been extended with subscription for 5 yrs in 2009 upto 31.03.2014.

    i have not made any withdrawals during the 20 yrs of the a/c.

    now can i withdraw the full amount accumulated ?

  34. ISKaushik says:

    Sir,

    I am of the opinion that there should be no time limit for the operation of PPF a/c except that it should be maintained initially for a minimum period of 15 years. After this period it should be operable/discontinued at the will of the account holder. This would save a lot of time and unnecessary paper work involved in applying for continuation. This would also mitigate the problem of account holders who inadvertently fail to renew the accounts after the completion of the initial 15 years.However,KYC norms will have to be strictly followed

    I hope the authorities concerned will realize the time and money that can be saved

  35. R MURALI says:

    Can I claim rebate under sec 80c the contrubution to my PPF account Rs.50000/-,to my spouse PPF a/c Rs.25000/- and to my son PPF account Rs.25000/- taking altogether
    and claim rebate under sec 80c of Rs.100000/-? All contributions made out of my
    taxable income.

  36. op anand says:

    mr k b singh,

    the request for extension may be made in 2013 as per my experience with sbi.

    OP anand

  37. Ravindra says:

    Hi,
    I have opened PPF account on 11th October 1998, what will be the date of its closure?

    Regards,

    Ravindra Khisti

  38. K.B.SINGH says:

    Sir, I opened PPF A/c in 23 Feb. 1998. When it should be applied for extention for next fibe block years

    Thanks,

    K.B. SINGH

  39. dattatreyahg says:

    Dear administrator, Cant you get this question from Naresh Bhadryadra d/d 19 oct 2012 9:19 AM,answered even after one month? This forum loses its value if such questions from uninitiated simple folks go unanswered. Pl realise that we,the non-experts,depend on YOU,for the answers,as we dont know where else to go.Pl get such questions answered quickly and take credit for it.

  40. naresh bhadiyadra says:

    I have a PPF account with SBI from Feb 91. It was due to mature in Mar 06, when I got it extended for 5 years till Mar 11. In Mar 11 I forgot to get it extended. Two days back when my cheque for PPF subscription was returned by the bank, I came to know about it. How can I get it extended now ? Last year my subscription was accepted by bank in Mar 12 and was also given the intrest till Mar 12. What about the intrest from Apr to Oct 12?

  41. dattatreyahg says:

    One thing I forgot to mention above. The writer may add that the lead article is applicable only to resident individuals.(kindly check if I am right in saying this,before adding this point).If my understanding is correct,HUFs have different rules in this regard.

  42. dattatreyahg says:

    Thanks for clarifying this issue in very simple,unambiguious and understandable language.It has done in one stroke what had not been done in earlier articles, in spite of several queries raised on this issue over years. It is this kind of articles that need to be promoted in TAXGURU—-keeping the common man’s need in view. That is what brings credit to TAXGURU.

  43. N K Padhi says:

    Is  the credits to PPF a/c after 15 years eligible for  income tax exemption ?

  44. MANJEET says:

    Sir,
    I opened PPF a/c in 1990 in New Delhi GPO (popularly known as Gol Dakkhana). After March 2005, I could not deposit any amount in a/c nor I have given any mandate.
    Now I want to continue my PPF a/c but Post office is not allowing. I have discussed with them the penalty clause for reviving the a/c but they not budging from their stand and are insisting closure of old account and opening of fresh a/c. Their contention is that PPF a/c can be revived only within expiry of one year from the date of maturity of PPF. I understand that Banks are allowing revival of such a/c after levying penalty.
    Please guide whether my a/c can be revived. If so pl quote the relevant guidelines issued by Govt. to be produced before them.
    Manjeet Singh

    • kiran says:

      Sir,
      I opened PPF a/c in 1990 in New Delhi GPO (popularly known as Gol Dakkhana). After March 2005, I could not deposit any amount in a/c nor I have given any mandate.
      Now I want to continue my PPF a/c but Post office is not allowing. I have discussed with them the penalty clause for reviving the a/c but they not budging from their stand and are insisting closure of old account and opening of fresh a/c. Their contention is that PPF a/c can be revived only within expiry of one year from the date of maturity of PPF. I understand that Banks are allowing revival of such a/c after levying penalty.
      Please guide whether my a/c can be revived. If so pl quote the relevant guidelines issued by Govt. to be produced before them.

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