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New Delhi6 minutes ago
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Public Provident Fund (PPF) is a popular scheme in our country. At present 7.1% interest is being paid under this scheme. The maturity period of PPF account is 15 years. You have 3 options when the PPF account matures. You can choose any of these according to you. Today we are telling you about them.
Close account after 15 years and withdraw money
On maturity of PPF account, you can withdraw the entire money by closing the account. To transfer the entire amount to your savings account, you will need to submit a form to the bank or post office (where you have a PPF account).
Can increase account with fresh deposit
If there is no need for money immediately, after maturity you can extend your account for 5 years. To increase a PPF account, you will need to submit the form within a year. For this, one year has to be increased before the maturity is completed. During these 5 years, you can withdraw money if needed.
Forwarding account without fresh deposit
The PPF account remains active even after maturing. If you do not choose both the above options, then your PPF maturity date automatically increases for 5 years. It does not require any paperwork. You will not need to contribute in any way, and you continue to get interest.
Get the benefit of tax rebate
PPF falls under the category of EEE. That is, you get the benefit of tax rebate on the entire investment made in the scheme. Also, there is no tax to be paid on the interest received from the investment in this scheme and also on the entire amount of the investment. Under this, under Section 80C of the Income Tax Act, tax exemption can be availed for investments up to Rs 1.5 lakh per annum.
Account can be opened in post office or bank
A PPF account can be opened in a post office or bank by someone else in his own name and on behalf of a minor. However, as per the rules, a PPF account cannot be opened in the name of a Hindu Undivided Family (HUF). Click here to know more about the scheme