{"id":2993,"date":"2023-12-11T16:42:55","date_gmt":"2023-12-11T11:12:55","guid":{"rendered":"https:\/\/gstguntur.com\/?p=2993"},"modified":"2023-12-12T17:46:39","modified_gmt":"2023-12-12T12:16:39","slug":"on-maturity-of-ppf-account","status":"publish","type":"post","link":"https:\/\/gstguntur.com\/on-maturity-of-ppf-account\/","title":{"rendered":"On Maturity of PPF Account – Closing or Extending The PPF Account"},"content":{"rendered":"

On Maturity of PPF Account:<\/strong> Individuals, particularly those who are not salaried workers, may benefit from the Public Provident Fund as a medium for long-term savings and as a means of preparing for retirement. PPFs are long-term investments that mature 15 years after the end of the financial year in which they were first purchased. This article has a brief description of PPF and what happens when a PPF account reaches maturity.<\/p>\n

PPF’s Maturity<\/h2>\n

The maturity of a Public Provident Fund (PPF) account is 15 years, but the calculation begins at the financial year’s end in which the account was opened. For example, if you get a PPF account opened on July 15, 2000, your 15-year term would begin on March 31, 2001, at the end of the fiscal year 2000-2001. The lock will be in place until March 31 2015, and you will be able to withdraw only after April 1, 2016.<\/p>\n

After 15 years, you can choose between two options:<\/p>\n

    \n
  1. Withdrawing the maturity account and then closing the account, OR<\/li>\n
  2. Keep the current PPF account open for another 5-year block duration. After the first five years have passed, you will continue to extend the PPF account for another five years. There is no limit to the number of extensions that can be created.<\/li>\n<\/ol>\n

    Let’s say your PPF account’s term is set to expire on March 31, 2015. The account balance at the time was about Rs 10 lakh. You can now choose to keep the account open for another five years (until March 31, 2020) and continue to invest as you have been. However, you can only withdraw Rs 6 lakh (60 percent of the balance on your credit on March 31, 2015) over five years until March 2020.<\/p>\n

    E.g., if you started a PPF account in the fiscal year 1999-2000, it will mature on April 1, 2015. You have the option to either cash in your PPF balance or extend the maturity of your PPF for another five years until 2020 from April 1, 2015, to March 31, 2016. You will continue to add to your PPF account after 2020, for example, to the years 2025, 2030, and so on.<\/p>\n

    Note:<\/strong> Once your PPF account expires, you can open a new one, but you’ll have to start over.<\/p>\n

    Continuation of PPF<\/h3>\n

    You have two options for keeping your PPF account open:<\/p>\n