PPF Account Extension Rules: PPF or Public Provident Fund is a government scheme. It gives an interest of 7.1%. This scheme matures in 15 years.
This scheme is considered very good for collecting money in the long term. Due to this, many people want to run this scheme for more than 15 years. For this, the option of PPF extension is available. PPF extension is done for 5 years at a time. But how many times can this extension be done? Many people are not aware about this. Know about it here.
Add rightsofemployees.com as a Preferred Source
There are two ways of extension
In case of PPF extension, the investor has two options – first, account extension with contribution and second, account extension without contribution. If you do not withdraw the amount after the maturity of 15 years, then your account gets extended automatically. The advantage of this is that whatever amount is deposited in your PPF account, you keep getting interest on it as per the calculation of PPF and tax exemption also remains applicable. Apart from this, you can withdraw any amount from this account anytime and in any amount. If you want, you can even withdraw the entire amount.
When does extension happen in 5-5 year blocks?
If you want to deposit a lot of money through PPF, then you will have to get an account extension with contribution. Extension with contribution is done for 5 years at a time. Every time you extend it, it will be extended in blocks of 5 years each.
How many times can an extension be done?
You can extend your PPF account as many times as you need. There is no limit for this at present. To extend the account with contribution, you will have to submit an application to the bank or post office where you have the account. You will have to submit this application before the completion of 1 year from the date of maturity and fill a form for extension. The form will be submitted in the same post office/bank branch where the PPF account has been opened. If you are unable to submit this form on time, you will not be able to contribute to the account.
Related Articles:-
New Vande Bharat to pass through world’s highest railway bridge; Know the full details
New Passport making rules have changed, check the list of required documents before applying
New Aadhaar App Verify Your Identity Through QR Code, Know how it works
Add rightsofemployees.com as a Preferred Source
