PPF Account Maturity: How Many Extensions Are Possible?
Let's understand simply how to extend the PPF acconunts after its maturity. (Pics: Freepik)
Every employee gets the Provident Funds. It has a certain lock-in period. PF accounts hold a lock-in period of 15 years. But after maturity, can we extend it? Let's understand from this article.
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After the initial 15 year term, PPF accounts may be prolonged for any length of time in five year increments, with no limit to the number of extensions.
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With extensions, interest can continue to accrue tax-free and, with contribution, additional investments can be made up to Rs. 1.5 lakh per year while allowing for partial withdrawals, according to the reports.
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To extend the account with contributions, you must file Form 4 (or Form H) within a year of maturity.
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According to the reports, you are only allowed one withdrawal every fiscal year and you are only allowed to take out 60% of the balance that was there at the beginning of each five year extension period. (Disclaimer: Given the input is on an information basis, please seek professional advice.)
