PPF: If your Public Provident Fund (PPF) account has completed 15 years, then now you have a chance to take some important decisions. This account is for a long period and also gives good interest. Also, the entire money of PPF is tax free.
PPF : If your Public Provident Fund (PPF) account has completed 15 years, then now you have a chance to take some important decisions. This account is for a long period and also gives good interest. Also, the entire money of PPF is tax free. Let us now understand what can be done after maturity.
1. Withdraw all the money
The first and the simplest way is to withdraw the entire money. Whatever you have invested till now and the interest you have received on it, you can withdraw all that money at once. For this, you will have to go to the bank or post office and submit Form C, your passbook and KYC document. This entire money is tax free.
2. Extend without deposit
If you do not need the money right now and do not want to invest, you can extend the account for 5 years. During this time you will not be able to deposit new money, but you will continue to get interest on the money already deposited. You can withdraw a small amount of money once every year.
3. Extend with deposit
If you want to continue investing small amounts in future, you can restart your PPF account for 5 years. For this, you will have to fill Form H within one year of maturity. You can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh every year. The interest on this will also be tax free. If no decision is taken in time, the account will automatically be extended for 5 years, but you will not be able to invest new money in it.
The interest will remain tax free even after maturity.
So when the PPF account matures, take the right decision by looking at your expenses and savings needs. This money is going to be very useful for your future. 7.1 percent annual interest is being given on PPF.
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