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We have to initially 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. The option of extension of account shall be made by the account holder before expiry of one year from the maturity of the account. 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.

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.

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

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.

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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69 Comments

  1. Kutub Challawala says:

    I have a PPF a/c with State Bank of India. which matured on 1-4-2022. now How I extend my maturity Date Online for next five years. please reply at your earliest.

  2. Vaidyanathan says:

    I had opened a PPF account in Central Bank of India on 5/2/1990 and after 15 years extended the account for another 5 years from 1/4/2005 to 31/3/2010. Further application for extension after 1/10/2010 for 5 years upto 31/3/2015. In the meantime on 14/7/2015 I got the account transferred to State Bank of India, Kandivali and the SBI issued me a passbook on 4/8/2015. I do not remember the extension date thereafter. I had been depositing every year in thei account in SBI till 23/04/2020 and the bank has crefited and given me interest in all these years. Now I submitted form H for extension from 1/4/2020 to 31/3/2025. They have accepted the form but not yet confirmed. On checking their system they informed that extension is not done from 2010 which was given in Central Bank a copy of my application cfor extension is with me. Under these circumstances what is status of the account. Banks do not keep their records or even if it is kept we do not know if they really search for the same. Request you to please give you reply on this.

    1. SN Srivastava says:

      I opened PPF a/c in Feb.1982 in SBI.Till now the a/c is being extended in a block of 5 years.About 39 years have been completed,how long more I can deposit in the same PPF.

    2. Marina Francis says:

      My PPF a/c dates back to 1982 with continuous contributory extensions since then. My name on my current Svgs bank accounts is Marina Rose Francis whereas the SBI passbook for my PPF a/c has printed my name as Francis Marina Rose. Will this cause problem for encashment of my holdings? If I close PPF will the cheque be issued as Francis Marina Rose and can the amount be transferred to Union Bank where my name is Marina Rose Francis.

  3. Seema sakunia says:

    My PPF a/c was matured on 2013 and extend to 2018 but not extend till date but alredy deposited some amount at march2019 and received the total intrest in March 2020,now I am interested to deposit some amount in August 2020, can I receive the intrest in total amount on March 2021, please confirm me
    Thanking you

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