INSUBCONTINENT EXCLUSIVE:
If a PPF account holder chooses the without-contribution mode, any amount can withdrawn
A PPF (Public Provident Fund) account can be continued after maturity,
with or without making further contributions
Despite the lowering of interest rates in recent times, PPF or Public Provident Fund is considered one of the best investment options for
accumulating savings for the long term
on small savings schemes such as PPF is revised on a quarterly basis
With effect from April 1, 2018, PPF account fetches an interest rate of 7.6 per cent per annum.A PPF subscriber whose account is about to
mature can choose to close the account and withdraw the entire proceeds.The other option would be to opt for extension of the PPF account,
which can be extended for one or more blocks of five years each, on application by the subscriber.(Also read: Are Partial Withdrawals From
PPF Account Taxable All You Need To Know)PPF Account ExtensionYou can extend your Public Provident Fund (PPF) account on maturity by a block
You have two options: with or without further contributions
So the account holder can retain the account after maturity for any period even without making any further deposits
A PPF deposit continues to earn interest till the account is closed.Partial withdrawals are possible from PPF accounts during the extended
period.(Also read: Why You Must Deposit Money In PPF Accounts Before Or On 5th Of Every Month)If a PPF account holder opts for the
with-contribution mode during the extended period, he or she can withdraw up to 60 per cent of the amount held in the account at the
beginning of the extended period
The balance continues to earn interest.On the other hand, if the PPF account holder chooses the without-contribution mode, any amount can
But only one withdrawal is allowed per year.PPF maturity proceeds are tax-free as PPF deposits fall under the EEE (exempt, exempt, exempt)
tax category, which means an investor is not liable to pay tax at all three levels - investment, earning and withdrawal.Tax experts say that
PPF partial withdrawals also don't attract any tax
"All payments from PPF shall be exempt from tax under Section 10 (11) and partial withdrawals or premature closure are not exceptions," says
Naveen Wadhwa, DGM at Taxmann.com.
