- PPF account can not be extended after 15 years completion(maturity) .
- PPF account can be extended for 5 years after 15 year completion(maturity) Maximum period can be 15 years.
- PPF account can be extended after 15 years period (maturity) for block of 5 years at a time ,as many times as you want.
But is Option (2) is correct ? What you think ?
"....any time after the expiry of 15 years from the end of the year in which the initial subscription was made by him "
- Withdraw full amount and closed your account .
- Extend your account for a block of Five years without subscription.
- Extend PPF account for a block of Five years with subscription.
So you can withdraw full amount in you account any time during extend time.
“Subject to the provisions of sub-paragraph (3) a subscriber may, on the expiry of 15 years from the end of the year in which the initial subscription was made but before then expiry of one year thereafter, may exercise an option with the Accounts Office in Form H, or as near thereto as possible, that he would continue to subscribe for a further block period of 5 years according to the limits of subscription specified in paragraph 3.”This Option must be opted on FORM -H ,with in one year from the end of the maturity period ,otherwise option without subscription will be applied automatically .
Example : PPF account opened on 21.08.2000.What is the maturity date ?when we should apply on form "H" for extension of PPF account with subscription ?
Ans :As the account was opened on 21.08.2000 ,to calculate maturity date ,15 years to be counted from end of the initial subscription year.In above example Initial subscription year is 2000-2001 and ends on 31.03.2001.
15 years from 31.03.2001 ends on 31.03.2016,so maturity date is 31.03.2016.
Extension application on Form H should be made before the end of one year from maturity date .
so in above case
Maturity date is =31.03.2016
Form H application should be made with in : 01.04.2016 to 31.03.2017.(Download PPF account scheme Form H)
so in above case ,If person do not apply on form H before 31.03.2017 then his account will be extended automatically as"Extension without subscription" and can not be changed back to "Extension with subscription".
Limit of withdrawal in extended period :Coming to liquidity, an investor, continuing his account with fresh subscriptions, can withdraw up to 60% of the balance to his credit at the commencement of each extended period in one or more installment, but only one per year.(Notification F.7/2/97-NS IIdt. 9.2.1998).
Correct answer :This time answer given by majority of person(more than 80 %) is incorrect and this result has come when correct answer was also available in option and most of persons who has attempted the question is from Finance / accounting field. We have also given a hint by commenting that why persons are not selecting the Answer (1) and (3) ,even then participant stick with option two. Though CA Ritika pundir and Nilam Rathod selected the correct option . Correct answer is (3) .
As per Sec 9(3) of the PPF Scheme, at its maturity, the account can be continued for a block of 5 years. This facility is available for any number of blocks on expiry of each of the extended periods. The continuation can be with or without contribution.so We can extend PPF account after completion of 15 years by block of 5 years ,as many time as we wish . PPF is popularly known as 15 year scheme .However, after the initial period of 15 years is over, one can keep on extending the deposit for a period of 5 years at a time.
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