Tax-deduction under Section 80C of Income Tax Act on deposits made after 15 years in PPF account without exercising option for continuance of account:-
Paragraph 9(3A) of PPF Scheme, 1968 provides for continuance of account on the expiry of 15 years for a block period of 5 years and so on, if the subscriber exercises an option within one year after the expiry of 15 years.
A question arose as to whether the deposits made after 15 years without exercising the option for continuance of the account would enjoy concession under Section 80-C of Income Tax Act. The matter was taken up with the Department of Revenue (Central Board of Direct Taxes). The CBDT has clarified that the benefits of Section 80-C of Income Tax Act will not be available on deposits made in PPF account after expiry of 15 years without exercising option for continuance of the account.
[MOF (DEA) letter No. F.7/8/88-NS.II dated 11.8.1992]
(Compiled by Taxguru Team)
