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PPF Maturity rules for withdrawing your money

by Manish Chauhan · 379 comments

Do you know what are the rules on PPF maturity if you want to withdraw your money ? Do you know that you can extend your PPF account a block of 5 yrs after it’s initial maturity of 15 yrs? A lot of people think that once the PPF maturity is over, they get a licence to withdraw the money at any point of time in what ever way they want, in the case of extension of PPF. Today let me highlight some important points that you should be clear about PPF withdrawal rule in case of extension and show you how to calculate your PPF maturity amount. To start with lets answer what Kailash Chandra asked me sometime back on his PPF

I had opened PPF account on 05/05/1995 and extended for 5 years. Now the balance is Rs.651000/- as on 30/04/2012 and want to withdrawal partly. What amount can I draw please intimate. (link)

Whats the answer?

Its 60% Surprised!… lets move on

Before we move forward, let me clear that Public Provident Fund or PPF is a life time account. One can extend it for next 5 yrs for infinite times, this means you can keep on extending it for another 5 yrs after the maturity is over. That would in a way makes it look like a 5 yrs closed fixed deposit earning you applicable interest rate with tax benefits and without any taxation involved, even having a partial withdrawal benefit :)  That’s one reason why you want to open your PPF account right now even if you don’t need it at the moment, so that the maturity is 15 yrs away from now. See it as a milestone!

PPF Maturity Rules

1. PPF extended without any further contribution

The first situation is when you want to continue your PPF account, but do not want to put any further money in it . In this case all you want to do is just leave your PPF account as it is and let it earn the interest on the account accumulated. Note that if you dont take any action for 1 yr after your PPF matures, this option is default and automatically activates. Note that once its considered as “extended without any further contribution”, then later you cant put any further subscription in it. Now you can only withdraw from the PPF account, but cannot invest any fresh money in it. Note that in this case, you can withdraw any amount from your Public Provident Fund account, there is no limit. You can withdraw 10%, 50% or 90% as there is no limit. The balance amount will keep on earning the interest further. However you can withdraw only once a year, not more than once. (Learn how PPF account interest is calculated)

Interesting Fact : Now as you know this,  can you see an interesting point here, this way PPF can be acting as a great Pension tool, where you can withdraw the interest part yearly once and then utilize it for full year. For example if a PPF account has 1 crore into it, and lets say the interest is 8% (just an example). You can withdraw 5 lacs out of the Public Provident Fund account and the remaining 95 lacs will earn 8% interest, which will be 7.4 lacs. This 7.4 lacs will be added back to 95 lacs and the total next year would be 102.4 lacs. This way one can keep on withdrawing some amount from it and let it grow too.

2. PPF extended with further contribution

In another option, you can choose to invest in your PPF account on regular basis even after extension. But this has to be done within 1 yr of PPF maturity (before the completion of 16 yrs in PPF). Note that in this case, you can only withdraw maximum 60% of your PPF amount in total within the entire 5 yrs block. Each year you can withdraw maximum once.

For example if your Public Provident Fund balance at maturity is Rs 1 crore. Then you can withdraw a total of maximum 60 lacs in entire 5 yr block. You can withdraw 20 lacs in first year, then 10 lacs in 2nd year and then 30 lacs in 4th year. But Once 60% is consumed , you cant touch any money further for the current block. Only when the 5 yrs are completed and new block of 5 yrs start, then your balance will be 40 lacs and then again the same rule applies. However note that at the start of a new 5 yr block, you can choose whether to continue the regular contribution or stop the contribution, like we discussed in point 1.

Important : If at the time of Public Provident Fund maturity , you will have the potential to invest more in your PPF account in coming years, then better invest more and more and only when its time to retire or when you cant contribute more, extend the PPF with “no further subscription” option.

Bank Officials have no idea about PPF Maturity Rules in detail

A lot of banks (SBI) and Post office officials have no idea about PPF rules in such a detail. They will tell you that it can be extended only 2 times and hence insist on closing your PPF account once 2 extensions happen after your PPF maturity. Tell them that you know what are the rules and also teach them.



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{ 379 comments… read them below or add one }

1 Mukesh Kumar SaH June 11, 2012 at 11:42 am

Hi Manish,
Thanks for the information!
You have any information that when post offices will provide online facility for PPF account .

Thanks,
Mukesh Kumar Sah

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2 KRANTIVIR RAJPUT June 11, 2012 at 9:14 pm

Only ICICI Bank provides online facillity for PPF w.e.f. 01-APRIL-2012.

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3 Yuvaraj Kamalay December 18, 2012 at 6:56 pm

SBI also provides online facility, I am using SBI for my PPF account since from last 2 years

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4 sumit January 17, 2014 at 3:09 pm

Yuvraj,
I did not see SBI provides PPF online . i guess u will have to have saving a/c to handle ur PPF account. can i handel ppf a/c online without opening saving a/c?

thanks,
Sumit

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5 Gajanand March 4, 2014 at 10:49 pm

Its possible to have the PPF a/c without savings a/c. But its always advisable by bank officials that as the amount in PPF a/c runns into lacks its better that you have savings a/c.

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6 Manish Chauhan March 12, 2014 at 9:08 pm

Why ? Any reason ?

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7 Manish Chauhan June 12, 2012 at 7:35 am

No Mukesh

No idea on that and I would recommend , do not expect it any time soon . It will take a lot of time for that !

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8 Ivan June 13, 2012 at 9:34 am

Automation of Post office accounts is underway. It might take one year to get all the post offices linked and to get online facilities like banks

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9 think June 11, 2012 at 12:07 pm

Can you tell me how you accumulate 1 core in the ppf, where you can only deposit 60,000 for 15 yrs where now its 1 lak a year. ?????????

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10 SATYA MOHAPATRA June 11, 2012 at 1:22 pm

Earlier it was 60,000 but now-a-days it is upto 1,00,000 which will be taken as tax saving. How ever you can deposit much more than that. Each month u can put as much as you afford.

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11 Ratnakar June 11, 2012 at 2:10 pm

I thought any deposit higher than 1,00,000 will NOT earn any interest. Or is the 1,00,000 ceiling only for tax rebate purposes? I am not sure.

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12 Surender Singh June 11, 2012 at 7:27 pm

Rebate available u/s 80C is upto 1,00,000/- only. But you can invest as much as you like – maximum 12 times in a year subject to once in a month. And entire amount will earn same interest.

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13 C.L.ASWATHANARAYANA June 12, 2012 at 5:34 am

1) Maximum deposit under the Scheme by an individual in the name of self and / or minor child of whom the depositor is the guardian is Rs. 1,00,000/- p.a. This rule is not applicable to current HUF accounts,which cannot be renewed and new accounts by HUF cannot be opened now.
2)There is no restriction that only one deposit can be made per month. All the 12 deposits can be made in the same month.
3) The amount deposited by an individual in excess of Rs. 1,00,000/- will NOT EARN INTEREST
C.L.ASWATHANARAYANA IFA BANGALORE

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14 Manish Chauhan June 12, 2012 at 7:20 am

1 lac is the highest ceiling in PPF account , if you do invest more than 1 lac it should ideally not be allowed, but even if happens you will not earn any interest on it

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15 Yatin Thaggarse June 12, 2012 at 7:45 am

Great article Manish. Can you also elaborate on options available for NRIs, PIOs etc? Can they continue the plan once they are abroad? What options do they have?

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16 Manish Chauhan June 12, 2012 at 7:56 am

If you are asking specifically for PPF ,then the sad part is that NRI/PIO are not allowed to extend their PPF accounts after 15 yr of maturity .

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17 Yatin Thaggarse June 12, 2012 at 12:17 pm

Thanks for the info.
Is it: (a) Without further investment only? (b) Whether NRI/PIO can continue without contribution and continue getting interest indefinitely on previous investments? Or both not possible.

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18 Manish Chauhan June 12, 2012 at 7:20 pm

Both not possible .. After maturity you need to withdraw it , if you do not withdraw it will not earn the interest . But the thing is this all thing is LEGALLY, If you are in US , how do PPF officials know that you are in US , if you do not do anything then things will get accumulated , but if they get to know that you are NRI at the time of maturity , then they will not give any interest !

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19 koguty June 12, 2012 at 10:56 am

You cannot deposit more than specified limit of PPF for a year – happened with me. PPF limit was 70k, but deposited more through cheque; after a year when getting the passbook updated – lo and behold – 70k credited to account [ the balance was returned as a DD]. So NO, you should not expect any interest on the amount exceeding the ceiling of PPF for that year.

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20 Manish Chauhan June 12, 2012 at 7:24 pm

Hmm.. didnt knew that this can also happen . thanks for updating !

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21 PANKAJ PARMAR June 12, 2012 at 12:01 pm

THis is the maximum permissible limit for deposits in a financial year. No further than that amount can be acceptable in PPF, forget earning interest on any deposit of more than Rs 1 L.

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22 Deepak R Khemani June 11, 2012 at 7:14 pm

You CANNOT deposit more than 10000/= a year, the computer software dosent allow you that even if the cheque is deposited for clearing the bank will prepare a draft in your name and send it back to you. 100000/= is the maximum that can be deposited in a PPF A/c in a year.

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23 Manish Chauhan June 12, 2012 at 7:22 am

No Satya

The excess amount you want to put above 1 lac will not be allowed and even if it is allowed , it will not earn any interest , so whats the use of it

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24 PANKAJ PARMAR June 12, 2012 at 10:03 pm

No, one can’t invest more than 1 L in a financial year. If by over-sight excess amount is accepted, then excess amount is to be refunded without any interest on it. Irrespective, how long this “excess” amount has remained in the account.

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25 Dominic June 11, 2012 at 2:36 pm

You can actually deposit 1 lakh/year from last financial year. PPF is not for just 15 years, you can extend 5 years multiple time.

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26 Phani June 11, 2012 at 4:00 pm

The figure used is an example :), obviously we cannot accumulate 1 crore in 15 years even after contributing 1 lac per year. Any amount more than this contributed per year will not earn interest. If you keep on extending and contributing until the actual time you cant contribute anymore, then the accumulation might reach 1 crore :)

Regards

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27 Manish Chauhan June 12, 2012 at 7:35 am

Its just illustration

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28 BIJAYA KUMAR PRADHAN June 11, 2012 at 12:07 pm

Hi Mr. Manish,
Can we withdraw 100% after 15 year or not ? what is the eaxact rule of 100% surrender ?

Regards,
Bijay

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29 SATYA MOHAPATRA June 11, 2012 at 1:24 pm

Yes you can withdraw whole 100% after 15-year maturity provided you do it before 16th year is completed and you have made no contribution in the 16 th year.

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30 Anand June 11, 2012 at 2:54 pm

Why the restriction that you should have not made contribution in 16th year?
I doubt this rule. Manish?

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31 C.L.ASWATHANARAYANA June 12, 2012 at 5:55 am

Provided no deposit is made during the 16th year the entire amount or part thereof can be withdrawn any time after the completion of 15 financial years after the financial year in which the account is opened (Ex: A/c opened any day between 01-04-1996 and 31-03-1997 can be closed or continued without further deposits and such (continued) accounts can be continued for life time with ONLY one withdrawal per year till the balance in the account becomes NIL.
PPF Scheme, 1968 came into existance in the year 1968. I doubt any account with a balance of Rs. 1.00.00.000/-
I think PPF Scheme,1968 Act and Rules must be available in a website. Any one tried ? -C.L.ASWATHANARAYANA

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32 Manish Chauhan June 12, 2012 at 7:03 am

Anand

There is no restriction in PPF about contribution in 16th year . All we are saying is that if you have not invested anything in PPF in 16th year , in that case what happens – its assumed that you are continuing your PPF without subscription !

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33 AAnoop Aroura October 23, 2013 at 10:41 am

w what is the maximum limit of amout per year can be deposited after maturity?

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34 Manish Chauhan October 26, 2013 at 10:10 am

Its same 1 lac. deposit rules does not change

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35 SATYA MOHAPATRA June 12, 2012 at 6:46 pm

You have contributed in 16th year means you have renewed for next 5year with paying option. Hence u can not withdraw 100%.
However you can withdraw upto60% within 16th to 20th year.

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36 Anand June 14, 2012 at 12:45 pm

Nothing like that. If you have contributed in 16th year, it does NOT mean that you have decided to renew. You can decide what to do with your PPF account on the day of maturity.

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37 SATYA MOHAPATRA June 14, 2012 at 1:37 pm

Dear Anand! please go through the below quoted PPF Act clause3A:
(3A) Continuation of account with deposits after maturity :- 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.
(3B) In the event of a subscriber opting to subscribe for the aforesaid block
period he shall be eligible to make partial withdrawals not exceeding one every
year by applying to the Accounts Office in Form C, or as near thereto as
possible, subject to the condition that the total of the withdrawals, during the 5
year blcok period , shall not exceed 60 percent of the balance at his credit at the
commencement of the said period.

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38 Manish Chauhan June 12, 2012 at 7:34 am

Yes you can withdraw 100% after maturity , but only within 1 yr from maturity (16th year) , after that you can still withdraw 100% but if you have not deposited anything in 16th year !

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39 Tarun June 11, 2012 at 12:17 pm

Excellent piece of information.
Thanks once agian.

Tarun

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40 Manish Chauhan June 12, 2012 at 7:33 am

Thanks Tarun for your appreciation

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41 Kranti Goyal June 11, 2012 at 12:20 pm

Hi Manish,

Thanks for great info.

Problem is with bank/post office employees are ego. They think they are always right and if you want to teach them they will start getting angry.

One more thing is there any government document regarding PPF rules. So we can also show this documents as proof to bank employees even file RTI.

Thanks and Regards
Kranti Goyal

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42 Anand June 11, 2012 at 3:07 pm
43 ss thind June 11, 2012 at 6:26 pm

it is always advisable now to go to any national bank like pnb or sbi .in a city though not all branches are authorised.sbi is having online facility while in pnb is like good old days you have to get ur passbook updated. banks are better bcos ypu can open a a/c and give satnding instructions to debit from this a/c to ppf a/c.you can always put money in this a/c anywhere .i have been doing this for 10 yrs , once a year or so i call up the branch to chk if the person handling ppf a/c has not changed.banks are more convenient.

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44 Manish Chauhan June 12, 2012 at 7:33 am

yes PPF office employees will not confess that they do not know something . but what you can do is that tell them that one of your friend has done otherwise and the bank official accepted it when he showed them PPF rules issued by govt . I feel this way there are chances that they will listen !

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45 Ratnakar June 11, 2012 at 12:21 pm

Hi Manish,

Very informative article. I did not know about extension with and without further contribution options. This was an eye opener. I also liked your interpretation as “great pension tool”. PPF is quite an effective instrument. This is my 15th year of PPF subscription and will surely extend for 5 yrs with regular contribution. Thanks!

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46 Manish Chauhan June 12, 2012 at 7:32 am

Nice to hear that ..

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47 Rajiv Mathur June 11, 2012 at 12:32 pm

Thanks Manish, This indeed is a very useful information. You deserve lot of patting for this. Rajiv Mathur

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48 Manish Chauhan June 12, 2012 at 7:27 am

Rajiv

Thanks .. you all need to spread this information, else it will be of no use :)

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49 Sushil June 11, 2012 at 1:21 pm

Sir
The information is really great and useful
Thanks

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50 Manish Chauhan June 12, 2012 at 7:22 am

Thanks Sushil

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51 SATYA MOHAPATRA June 11, 2012 at 1:27 pm

With existing rules one can put money once in a month that means total 12 subscriptions in a year. How much one can put in a year? Is it 1,00,000(one lakh) or more?

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52 Ratnakar June 11, 2012 at 2:17 pm

See the link in the article on how interest is calculated. It is better to do lump sum deposit if possible than monthly deposits to fetch higher interest. I know the limit to get tax rebate is 1,00,000 but not sure what happens if you deposit > 1 lakh.
I guess it will not earn any interest.

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53 Manish Chauhan June 12, 2012 at 7:11 am

Yes. it will not earn any interest

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54 santosh June 11, 2012 at 2:19 pm

Min 500 and Max 100,000 in a year . But why banks (SBI) are not so interested in opening ppf a/c…….don’t they get commission on ppf ?

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55 Manish Chauhan June 12, 2012 at 7:10 am

No , banks do not get commission on PPF

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56 Manish Chauhan June 12, 2012 at 7:21 am

1 lac per year max .. and 12 installment in a year .. total

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57 Nikunj Bhatt June 11, 2012 at 1:48 pm

Thank you, Manish.

This is a very useful input for all PPF Investors who, (like me) are on the verge of completing the 15 years lock-in.

The info on endless continuation of this account is extremely useful too and I am sure many of us were ignorant about it, do far. The withdrawal rules too, are very informative.

Thank you, once again.

I have a question on Income tax that I seek an answer to, from you. How should I go about it? Pl let me know at me E mail add above.
Thank you,
Sincerely,
NKB

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58 Manish Chauhan June 12, 2012 at 7:21 am

Thanks Nikunj

for your tax question , please use our forum for that : http://www.jagoinvestor.com/forum

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59 BIJAYA KUMAR PRADHAN June 11, 2012 at 2:21 pm

Earlier it was 70,000 but now-a-days it is upto 1,00,000 which will be taken as tax saving. Each month u can put Maximum upto 1,00,000 in 12 instal.

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60 BIJAYA KUMAR PRADHAN June 11, 2012 at 2:28 pm

Dear Mr. Manish,
I am having two home loan, both are more 1.5 lacs per Annum. How i will save these in tax claim. What is the exact procedure for taking the maximum tax benefit.

Thanks.
Bijay

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61 BIJAYA KUMAR PRADHAN June 11, 2012 at 2:29 pm

Dear Mr. Manish,
I am having two home loan, both are more 1.5 lacs per Annum. How i will save these in tax claim ?What is the exact procedure for taking the maximum tax benefit.

Thanks.
Bijay

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62 Manish Chauhan June 12, 2012 at 7:09 am

You can claim 1.5 lac on first home loan and unlimited interest claim on second house if its rented

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63 BIJAYA KUMAR PRADHAN June 11, 2012 at 2:30 pm

yaa cumm. of both interest is more than 3.0 lacs….,
plz advise how i will save ??

THanks.
Bijay

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64 ASHAL JAUHARI June 11, 2012 at 4:31 pm

Dear Bijaya, I request you to have a look on similar queries discussed in
http://www.jagoinvestor.com/forum
A lot of info is there already.
Thanks
Ashal

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65 Manish Chauhan June 12, 2012 at 7:08 am

Your question is not clear to me

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66 Anand June 11, 2012 at 2:43 pm

Good article… but a couple of things.

First of all, it’s not possible to accumulate 1 crore in 15 years in PPF. It would be prudent to assume a realistic value.

Also, there is no mention of form-H, which needs to be submitted if one wants to continue PPF account with contribution.

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67 Manish Chauhan June 12, 2012 at 7:08 am

Anand its just for illustration .. Its for learning purpose , even if I use 10 lacs, the meaning would be conveyed in same way

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68 Abhishek June 11, 2012 at 2:46 pm

Nice Article!

The last line is hilarious! Does anybody has the guts to teach the SBI babus a thing or two about PPF. I don’t think so. :-)

When does the PPF matures? I’ve heard that the time calculation starts from the end of FY in which first investment is made. In effect, after 16 years, if the first investment is made in April. So, after 16th yr and before 17th yr, the extension decision is to be made. Correct me if I am wrong.

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69 Manish Chauhan June 12, 2012 at 7:07 am

Yes Abhishek you are correct . Its always 15 yrs from the end of the financial year from when you started . Like if you opened it on 19th Sept 1990 . You have invested in the year 1990-1991 . Now end of 1991 financial year , which is Mar 31st 1991 will be taken as starting date , and it will be 15 yrs from that date , that is Mar 31st 2006 as maturity date

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70 Sagar Pawar June 14, 2012 at 3:12 pm

In the above case, If I want to continue my PPF account with contribution, should I fill the form H and next installment after March 31st 2006 or between (1-Apr-2005 to 31-March-2006)

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71 Sunil June 11, 2012 at 3:15 pm

Bank officials don’t even know that, it can be extended without subscription. At one of the PSU banks I was told that, such option does not exist.

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72 Manish Chauhan June 12, 2012 at 7:00 am

Obviously they dont know .. you need trainers in the area of PPF for banks :)

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73 Sunil June 12, 2012 at 10:00 am

Hi Manish,
I see a potential business opportunity there! :-)
But, let me share with you, my experience with ICICI Bank in this regards was pleasant. I just wrote to customer care, “why can’t I open PPF account at any of the branches of ICICI Bank? With the advent of Core Banking Solutions, customers should be allowed online PPF account”. I got a reply stating that, “presently ppf account can be opened only @ main branch”. Within a month I saw a link on ICICI Bank net banking portal for “online PPF account” with words “new” flashing next to it! :-)
They are really lending their ears to customer grievances and complaints. Way to go!

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74 Manish Chauhan June 12, 2012 at 7:26 pm

Hmm … so now you are saying they are allowing it at all the branches ? Not just the main branch ! is it !

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75 Sunil June 13, 2012 at 9:58 am

If its online, branch doesn’t matter as such except for one time account opening. All the hassels of subsequent visits for deposit and passbook updates are done away with.

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76 Phani Kiran June 17, 2012 at 7:30 pm

Ha ha, everything we want to do online only :).
As i am aware, still it is not possible to open at any ICICI bank. The online link is just to input details and take some printout and visit the specific ICICI branch with all documents. PPF is part of Government scheme and therefore only branches where ‘Treasury’ operations are performed accept them – Not all the branches.

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77 Manish Chauhan June 19, 2012 at 10:23 am

Thanks for this information about “treasury Operations” .. what exactly it means ?

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78 Phani Kiran June 19, 2012 at 11:45 am

I think it means ‘government business’ – like taxes etc.

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79 dr nilesh June 11, 2012 at 3:37 pm

really nice article,
manish you are really a guru for new learners like us,
we have learned so many things from this blog and now we are spreading this awareness to all my friends and relatives,
for them i became the only source person of all these knowledge,but they dont know u r my guru in this finance knowledge world.
a small doubt,
can we open 2 account for self and kid and invest 1 lakh each in 2 account.

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80 Abhishek June 11, 2012 at 6:11 pm

you can, but for tax purpose you won’t get any benefit for more than 1 lakhs

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81 Manish Chauhan June 12, 2012 at 7:00 am

Thanks for your comment Nilesh.. You can not open 2 PPF account for yourself . all you can do is open another one for your minor child and be a guardian

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82 ASHAL JAUHARI June 11, 2012 at 4:30 pm

Dear friends, many of you are posting queries regarding PPF. I request you people to have a look on similar queries discussed in

http://www.jagoinvestor.com/forum

A lot of info is there already.

Thanks

Ashal

Reply

83 deepesh June 11, 2012 at 6:09 pm

dear manish,

you every blog is just superb….kudos

thanks

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84 Manish Chauhan June 12, 2012 at 6:50 am

Thanks Deepesh

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85 Raman K S June 11, 2012 at 6:21 pm

Excellent piece of information; in day-to-day matters. Grateful thanks to you.

One clarification needed is about date of deposit. Would like to know if interest is payable by the Bank from the date of deposit of cheque or after realisation of cheque. Kindly guide me.

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86 C.L.ASWATHANARAYANA June 12, 2012 at 6:13 am

Earlier the day a local cheque was deposited in the office it was deemed to be credited and such deposits were earning interest from the month of deposit if the deposits/ cheques were made/presented on or before 5th of the month. At present the date of realisation of the cheque is deemed to be the date of deposit.
C.L.ASWATHANARAYANA IFA BANGALORE

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87 nachiket June 11, 2012 at 8:20 pm

Thanks for this wonderful information Manish.

I have one question, if I open an account for myself and also open another account in the name of my kid, I know that I will be able to get tax deduction from each years IT return for the amount that I invest in my account. However will there be any tax at the maturity for the account that I opened in my kids name?

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88 Manish Chauhan June 12, 2012 at 6:45 am

Yes Nachiket

You can get the tax deduction from your kid PPF account also , but the total deduction in a year can be total of 1 lac only , like if you invest 50k in yours and 70k in your kid account , then total 1 lac you can claim

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89 Prabir Sharma June 11, 2012 at 8:42 pm

If someone having a PPF a/c and want to be open a another one. Could it possible.

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90 KRANTIVIR RAJPUT June 11, 2012 at 9:12 pm

Only 1 account is allowed per person.

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91 Manish Chauhan June 12, 2012 at 6:43 am

No Prabir .. its not possible

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92 KRANTIVIR RAJPUT June 11, 2012 at 9:15 pm

Manish, Excellent article regarding your Favorite debt instrument PPF!!

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93 shankar June 11, 2012 at 9:58 pm

hi,

One thing..try to deposit the 1 lac limit for the financial year..as early as possible..to get max benefit of compounding interest and also because interest calculated on minimum balance available after 5th for a month..

So, ideally if we deposit 1 lac before 5th of april….thats best possible way

shankar

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94 Manish Chauhan June 12, 2012 at 6:42 am

True ! .

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95 ALAGAPPAN S June 11, 2012 at 10:04 pm

A PERSON HAS OPENED A PPF ACCOUNT AND COMPLETED 15 YEARS. BUT HE HAS NOT REMITTED ANY MONEY FOR THE LAST 5 YEARS. AFTER 15 YEARS HE COMES FOR CLOSING THE PPF ACCOUNT. WHETHER PENALTY FOR NOT REMITTING FOR THE LAST 5 YEARS IS TO BE RECOVERED FROM HIM OR NOT

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96 Manish Chauhan June 12, 2012 at 6:41 am

No , this can not happen . Its fine if you do not deposit any money in your PPF account after maturity , its deemed to be extended without “subscription”

Manish

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97 Mansoor June 11, 2012 at 10:33 pm

Great point, Thanks for emphasizing the importance of having a PPF account. Everyone’s debt portfolio should have this instrument.

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98 Manish Chauhan June 12, 2012 at 6:37 am

Thanks

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99 Vivek, Hyderabad June 12, 2012 at 6:19 am

PPF is one such great Safe-haven Financial Product I have ever seen. But, of late, the only thing I regret about PPF is Interest Rates. I have seen the peak levels of 12% Interest on PPF. From thereon, the interest has been on a downward spiral touching rock-bottom lows of 8%. Its a Shame that Returns on a “National Financial Product” is so abysmal. Its all because of our Greedy and incompetent politicians. The PPF acts as a “Cheap Fund Reserve” for our Govt. to use for their Schemes or other clandestine activities. I wish the Interest rates on PPF at not below 10%, given that its a National Financial Product with huge lock-in period (as long as average home loan tenure).

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100 Manish Chauhan June 12, 2012 at 6:33 am

Vivek

I am not sure how correct it is to say that the return of PPF should be above 10% just because its a national product ? What is the basis for that ? What was the FD rates at that time ? what was the inflation that time ?

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101 Vivek June 12, 2012 at 9:09 am

What is the Basis for that? Being a Govt. initiated National Product, it should atleast beat Inflation. Because of high inflation, Purchasing Power has come down.

Banks can certainly not offer the 10% kind of returns.

But some Real Returns in terms of Inflation can be insisted from Govt.

Besides, the long lock-in period itself should allow 1% higher rate than card/rack rate, because higher tenure means low asset liability management for the Govt.

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102 Manish Chauhan June 12, 2012 at 7:35 pm

Vivek

Thats the issue .. how do govt track inflation on so frequent basis ? FD rates are generally anyways near inflation .. better than PPF , I think FD are inflation linked !

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103 A V Gosavi June 12, 2012 at 7:46 am

Dear Manish,
You are indeed great! You have enlightened my understanding about PPF. I am happy that I continued after 15 years and have been contributing regularly. But your article has gave me great support that my decision has been, only not only correct, but a greatest boon for me as Retired Tax payer and also investor!.
Many many thanks for your yeoman job!

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104 Manish Chauhan June 12, 2012 at 7:55 am

Thanks Anand :)

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105 Dr M Chandrashekhar June 12, 2012 at 9:41 am

Excellent article, Manish. Great info . I have forwarded it my friends.

Dr MCS

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106 Manish Chauhan June 12, 2012 at 7:27 pm

Thanks ChandraShekhar !

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107 koguty June 12, 2012 at 11:07 am

A couple of questions –

What happens if I do not contribute to PPF for 1 year [not even the minimum contribution] – will there be any problems at withdrawal/maturity/extension?

Can we move our PPF from SBI to ICICI?

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108 Manish Chauhan June 12, 2012 at 7:22 pm

If you do not make the payment (even minimum) for some year .. your PPF account will get into suspended mode , then you need to again renew it by paying Rs 50 per year penalty and contribution for all the years you have not paid (500 per year) , but I am not sure if you will get interest for those months when it was not active !

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109 koguty June 12, 2012 at 8:26 pm

Interest got credited to my account for the “inactive” year.
How do I know if it is inactive/suspended mode? I am able to deposit in it, interest is credited?
Will this inactivity/suspension come into picture while maturity/withdrawal?

I am hoping nothing fishy is awaiting me for this 1 miss later down the line :(.

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110 Manish Chauhan June 12, 2012 at 10:32 pm

hmm.. in that case may be i was wrong that you do not get interest for inactive year .. note that inactive means a financial year here from Apr 1 2011 to Mar 31 2012 , like that ..

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111 Sumeet Gupta June 12, 2012 at 2:43 pm

Excellent information Manish. My query to you, i already have a PPF account in my local post office. Though i believe the answer is No, can i get this PPF transferred to SBI or may be ICICI, now that they have started providing it?

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112 Manish Chauhan June 12, 2012 at 7:16 pm

Obviously YES :) .. why do you think the answer is no , PPF accounts are portable , the only issue is you need to put some time and effort on this .. enquire in ICICI how to do that .. they will help you

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113 Deepa June 12, 2012 at 4:12 pm

HI Manish,

Till the time I read this article I was under the impression that PPF account can be extended only twice . Also as mentioned by you, a PPF investment as a pension tool has given a new insight to me.
Just a query can a PPF account be transferred to another branch of same bank in a different city?

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114 Manish Chauhan June 12, 2012 at 7:14 pm

Yes .. PPF account can be transferred from one place to another, but you would need to fill up some forms for that, enquire in that bank for this

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115 Manidipa Bhaumik June 12, 2012 at 4:21 pm

OMG!! You have just opened my eyes. What an analysis. I just realized the power of PPF. I have decided to use my PPF account as my pension plan. I have started a ppf account recently. Last year I have deposited 20000/- . This year I am planning to contribute 30k to it. My age is 28. Can I g et Rs 1 cr by 50-55 yr?
How much I have to invest in ppf for that yearly, can u pls suggest if you have time.

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116 Venkataraman Ramamoorthy June 12, 2012 at 6:29 pm

Hi Mandipa,

If you invest 50,000/- in PPF for the next 35 years, You would have accumulated a total amount of more than 1 crore (ROI – 9%). But if you invest 100,000/- for the next 27 years, you would also accumulated the same amount.

Just wanted to share….

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117 Manidipa Bhaumik June 12, 2012 at 8:17 pm

Thanks Manish. But as you mentioned if invest 100000 for 27 years, I will get the same. Can u pls tell me where I can invest the lumpsum of 100000 to get 1 cr?

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118 Manish Chauhan June 12, 2012 at 10:27 pm

Manidipa

You need 19% on yearly basis to get 1 crore from 1 time investment of 1 lac over 27 yrs .. its very tough actually .. From mutual funds you can expect 15% with lot of optimism .. so I would say you really cant generate 1 crore from 1 lac in 27 yrs in real life assuming consistency in returns from various products

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119 Manidipa Bhaumik June 12, 2012 at 11:00 pm

Thanks Manish.

Anyway I am now trying to finish my homeloan asap. For that I am trying to accumulate max cash to repay. I did some calculation, based on that I found repaying homeloan is far better than any savings, till my home loan is finished. Kindly let me know your views on that also.

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120 Manish Chauhan June 12, 2012 at 7:13 pm

Good to hear that .. you can use simple maths to calculate how much you would need it , there are some calculators here for your help : http://www.jagoinvestor.com/calculator

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121 Parag Rodrigues June 12, 2012 at 9:53 pm

Hi Manish,

Undoubtedly, this article has been an Eye-opener for me. I hjeld PPOF account for past 4 years but my investment to PPF was quite minimal.

I was under wrong belief that PPF account can be held for max 20 yrs ( 5 yrs exteneded only once after your maturity). But things are now VERY MUCH CLEAR.

We can opt to extend fo another 5 yrs based on the options (with / without further subscription.

Could you please assist to know if we need to explicitly define in some form to conifrm the relevant option.

THANKS A TON FOR SUCH FANTASTIC ARTICLE. …

3 Cheers to you….. :-)

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122 Manish Chauhan June 12, 2012 at 10:37 pm

Parag

Actually there is a form , but i dont know the name right now . you can go to PPF office and ask for it , they will assist you on that ..

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123 Anand June 13, 2012 at 12:27 pm
124 Anand June 13, 2012 at 12:26 pm

form-H needs to be submitted if one wants to continue PPF account with contribution.

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125 Veeraf June 13, 2012 at 8:01 pm

Manish,
Could you please write some articles on NPS also, I am stuck with an NPS account which has been made inactive because of careless nature of bank employees of Kotak bank. They did not deposit the check in time and now my account has been made inactive. When I ask Kotak bank they tell me that there are no rules for making the NPS card active again. We have to wait untill new rules come out.
Please advise path forward.

Best regards,
Veeraf.

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126 Manish Chauhan June 14, 2012 at 3:23 pm

I think you should ask this on our forum : jagoinvestor.com/forum .. people there will have an immediate answer on this

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127 Veeraf June 14, 2012 at 3:40 pm

ok thanks Manish.

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128 RAVI VERENKAR June 14, 2012 at 12:40 pm

Hi Manish,
Excellent article. PPF as a long term investment vehicle is still not understood by many. Creating awareness about it is a must. Congrats to you for all that.
I have a question for you on PPF: How much maximum contribution can one make in a year for a family of 04 people (husband, wife & two minor children)? Is it Rs. 4 lakhs altogether with a contribution of Rs. 1 lakh in each individual account OR a total of Rs. 2 lakhs distributed amongst the four of them.
I have seen people contributing the maximum even in their minor children’s PPF accounts apart from their own accounts.
Is it legally right. Please throw some light on it? Thanks a ton for all your valuable articles.
Regards,
Ravi.

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129 Manish Chauhan June 14, 2012 at 3:11 pm

Each account can have maximum 1 lac per year .. but a person can claim tax benefit of only upto 1 lac including his and his child account . SO if a person opens a PPF account for his child (minor) being his guardian . He can deposit upto 1 lac in each , but he will get tax benefit on just 1 lac

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130 RAVI VERENKAR June 14, 2012 at 3:26 pm

Thanks Manish for the clarification.

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131 Anand June 16, 2012 at 12:48 pm

Manish,

Ashal mentions that the combined limit of your PPF account and your child’s PPF account is 1 lakh, whereas you say that 1 lakh each can be deposited.
What does the PPF rulebook say?

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132 Manish Chauhan June 19, 2012 at 11:16 am

That limit is 1 lac for taxation deduction . you can deposit upto 1 lac, but total deduction available is just 1 lac

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133 Anand June 19, 2012 at 11:52 am

Forget tax deduction. Just let me know whether I can deposit 1 lakh in my account and 1 lakh in my kid’s account.

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134 Manish Chauhan June 19, 2012 at 12:50 pm

that should be possible

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135 Anand June 19, 2012 at 5:41 pm

But Ashal says that the combined limit is 1 lakh!

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136 Manish Chauhan June 19, 2012 at 6:38 pm

Anand

My bad .. I think Ashal is right . One can not put more than 1 lac combined for his own and minor account whose guardian he is

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137 nisha January 23, 2013 at 7:22 pm

manishji

i have one my ppf account and other one of my son (minor) acccount in SBI .now wht should i do….. my ac.in 16th y and son’s ac in 9th y running…….pl suggest…

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138 Shiv June 15, 2012 at 9:47 am

Thanks Manish!! nice Article .

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139 Ritesh Kumar Singh June 16, 2012 at 1:48 pm

Hi Manish,

This article came as quite a surprise about the 60% limit !

can you please advice the source of this information ? I had made PPF investment with my first year job and the only investment of which I am proud of which was made forcefully by an elder in family. I have also completed almost 50% tenure so only 50% lock in period is left !

Thanks,
ritesh

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140 Manish Chauhan June 19, 2012 at 11:15 am

Ritesh

See http://www.indiapost.gov.in/POSBActs/PPFRules1968.pdf section 9 3b . This is clearly mentioned in the PPF rule book by POst office

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141 Dinesh June 18, 2012 at 11:17 am

Thanks Manish..
I feel more enlightened with this article …
i will definitely share this with my friends..

regards

dinesh saboo

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142 Manish Chauhan June 18, 2012 at 6:36 pm

Thanks Dinesh

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143 Madhava ram June 18, 2012 at 10:07 pm

Thanks Manish for sharing this.

But the examples which were shown above as saying 1 crore, I don’t think we can make 1 crore balance in PPF as the limit is per year 1 Lakh. In case if I am wrong, please give an example how our money can grow to a crore.

Thanks
Madhava ram

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144 Praveen K June 18, 2012 at 10:25 pm

Thanks manish, that was very informative. appreciate the time you spend to write these articles. thank you.

Praveen K.

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145 Manish Chauhan June 19, 2012 at 9:44 am

Thanks .. would be great if you guys can extend the help in spreading these articles in your company at common mailing id’s .. this will help us grow

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146 Praveen K August 22, 2012 at 12:32 pm

Yes, I’m already recommending your website to many in my office. About 5 of them are already following your website regularly.

For the knowledge I gain from these posts, I feel in debt of doing at least this.

continue your good work!

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147 Manish Chauhan August 22, 2012 at 6:38 pm

Good to hear that .. please let us know others about it !

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148 geo thomas June 18, 2012 at 11:02 pm

Thanks manish for a wonderful information. thanks for sharing.

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149 Manish Chauhan June 19, 2012 at 9:36 am

Welcome Geo !

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150 Ajay June 19, 2012 at 3:18 pm

Hi Manish,

This is a really informative article.

My recent experience with PPF A/c.

When I went to deposit the cheque of a Pvt bank to the PPF a/c in a Nationalized bank – I was informed that for PPF we cannot accept the cheques for other banks, rather you should have the account with our bank – this was not the case till last year.
Then they said if you don’t a A/c with our Bank – either open a new account with us OR you need to deposit cash – so I withdrew cash from my Pvt. bank a/c and then deposited the cash in the Nationalized bank branch of my PPF A/c.

Any idea if there are any such changes in the rules.

Regards
Ajay

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151 Manish Chauhan June 19, 2012 at 6:47 pm

No there is no rule like this , You should have threatened them that you will find the information using RTI application on this .

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152 Ajay June 19, 2012 at 3:22 pm

A nice article with a detailed explanation.- Good one Manish !!

Will definitely share if with my friends.

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153 Manish Chauhan June 19, 2012 at 6:46 pm

Thanks Ajay

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154 Manish Varshney June 19, 2012 at 6:09 pm

Hi Manish,

Thanks for the Article on the PPF A/C Extension.
Can u plz elaborate the 100% withdraw conditions after Maturity With Extension and Without Extension.

Regards,
Manish

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155 Manish Chauhan June 19, 2012 at 6:34 pm

Manish

I am not sure what additional information you want ? What you had asked is already discussed in the article .

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156 Yeshwant June 24, 2012 at 11:40 am

Hi Manish..this is very informative PPF info

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157 Manish Chauhan June 24, 2012 at 1:33 pm

Welcome Yashwant .. Did you open the PPF account ?

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158 VIJAY July 9, 2012 at 1:22 pm

Nice article
I have read following article one of the leading english newspaper few months back

“Procedure for post-maturity continuation of an
account
There are a couple of formalities to comply with
for declaring your intentions regarding post maturity
continuance.
You will need to submit Form-H to declare your intention
of continuing the account with subscription
for each extended period. It should be filed before the
first contribution is made for the first year of extension.
Else, the account will be treated as without-subscription
extension.
Fresh contributions made to such accounts will
enjoy neither the deduction under Section 80C nor
the interest. [MoF (DEA) 7/21/88-NS-II dated August
10, 1990]”

My question is
1) is this true?
2) if yes ,then if fresh contibustion made in extened pff account is neither going to enjoy deduction under 80 c nor the interest ,then what is the use of putting further contribution
I tried to get the ansure form SBI & CBI bank , but nobody gave me proper answer
please davise,

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159 Manish Chauhan July 9, 2012 at 6:53 pm

Seems like this is correct .

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160 Ashutosh Goel July 9, 2012 at 3:08 pm

Great information Manish. thank a lot

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161 Manish Chauhan July 9, 2012 at 6:34 pm

Thanks Ashutosh !

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162 vinod July 14, 2012 at 2:59 pm

Hi Manish, just following the PPF thread here, very informative.
i came across this website- link-http://www.investmentkit.com/government/ppf.shtml

here it says that a nri can open a ppf account. pls give your inputs on this.
i am not a NRI but just work overseas and get my salary in dollars. in NRE account.
can i open a ppf account?
pls advice
thanks
vinod

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163 Manish Chauhan July 14, 2012 at 3:37 pm

Vinod

PPF accounts can not be opened by NRI’s , they can just invest in their already opened PPF account. I dont think the information on the link given by you is correct !

I am not clear about your status , when you work overseas and get your salary in your NRE account in dollars , then how are you not NRI , are you saying that you are in india physically ? If that is the case then your income is taxable in India .

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164 Saurav Bagchi July 23, 2012 at 5:54 pm

Hi Manish,

Suppose I want to invest 1 Lakh in PPF per year. If I make this invested within first three months of a financial year(April, May, June) or within last three months of a financial year(Jan, Feb, March).. will the interest earned for that financial year will be same in either cases?

I have heard that the PPF investment needs to be done before 5th working Day of a month so that the interest for that month is calculated/taken into account.

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165 Manish Chauhan July 24, 2012 at 8:51 pm

You should do it in starting months , you can read in detail how the interest in calculated on PPF here – http://www.jagoinvestor.com/2012/02/how-ppf-interest-is-calculated-video.html

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166 Saurav Bagchi July 25, 2012 at 9:41 am

Thanks a lot Manish. This information is very useful to me.

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167 S.Prakash July 24, 2012 at 4:50 pm

Dear Manish,

Thanks for the very informative article. I think this is an A-Z article on PPF. I have a ppf account in SBI. Whether I can open a PPF a/c in my wife’s name and contribute to it.

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168 Manish Chauhan July 24, 2012 at 8:22 pm

You can open a PPF on your wife name, but the payment has to be on her name only

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169 Hardik July 28, 2012 at 7:28 pm

Nice article its very thankful.

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170 Subh August 7, 2012 at 2:01 am

Hi manish,

Could you please let me know the following
1) if the matured amount from PPF is tax free as the the matured amount from FD isn’t.
2) which one would be the best to open a PPF a/c, SBI/PO?

Thanks
Subh

Reply

171 Manish Chauhan August 7, 2012 at 7:13 am

Subh

1. Tax FREE

2. No difference from PPF point of view, but investing in SBI has its own advantages like online investing

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172 Subh August 7, 2012 at 3:41 pm

Thank you manish.:)

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173 Shubh August 18, 2012 at 4:08 pm

Hi manish,

Need your help. I have opened a PPF a/c with SBI and i have the online banking facility for Axis bank and i have the facility for the other bank power transfer also in Axis bank. So from Axis bank online banking i can transfer amount to any other bank a/c but not sure if i can transfer amount to the SBI PPF a/c.
Till date i had transferred into saving and salary account through the online banking.
Please let me know if i can transfer amount from axis bank online banking to SBI PPF a/c

Regards
Shubh

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174 Manish Chauhan August 20, 2012 at 10:24 am

Mostly you should be , many people have done that, whats stopping you from TRYING this ?

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175 jains December 11, 2013 at 11:08 pm

I have transferred online from Citibank to SBI PPF account online. If I remember I had marked account type as savings wherever it was asked during payee registration

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176 Surendra August 22, 2012 at 12:39 pm

Hi Manish,
I have one question and i didn’t get answer from google. Hope you could help me.
Question:
On maturity of PPF account do i need to visit the same branch or Post office for withdrawing the amount? or we can withdraw the amount from any branch?

I mean same branch means the branch that we opened the PPF account.

Ex:- Opened my PPF account at ICICI bank, Pune, Bund graden branch do i will be eligible to withdrawn maturity amount from any ICICI bank branches accross India or i need to visit ICICI bank, Pune, Bund graden branch?

Thanks In Advance,
Surendra.

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177 Manish Chauhan August 22, 2012 at 6:35 pm

As of now what i know with SBI is that you can withdraw it from same branch , but it might be a SBI issue , with ICICI it might not be the case, but you can apply for withdrawal and the money can be transferred to your account, you dont need to be present there !

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178 Surendra August 22, 2012 at 7:48 pm

Thank you Manish for the reply.

This is very good site for financial matters and information. And also we can except quick reply on same day itself by experts. :)

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179 jains December 11, 2013 at 11:11 pm

Fundamentally you need to deposit physical passbook (SBI) so in person visit is needed. In case ICICI is not providing physical passbooks, there is a possibility of exemption from visit to home branch — but I have my doubts

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180 Santosh August 28, 2012 at 12:49 pm

Dear All

What happens if I do not deposit PPF amount for 1 year due to financial problem [not even the minimum contribution] – will there be any problems at withdrawal/maturity/extension?

Can I deposit 2 years contribution in coming year

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181 Manish Chauhan August 28, 2012 at 9:38 pm

Santosh

you account will be inactive, but you can deposit 2 yrs money later with a penalty of Rs 50 for each year of non payment .

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182 Pratik August 28, 2012 at 4:10 pm

Hi Manish,

I have a question regarding the PPF account.

what should i do if my PPF account is matured , let say 15 years are over and the 16th year is going on with outstanding amount as say 15 lakhs. now i dont want to make contribution to this account as i am expecting to withdraw this entire amount (15 lakhs) in another 1-2 years. Also i have current income which i want to pump into PPF in say Rs 1 lakh every year. but i make contibution to this account it would get extended for another 5 yr and i would only be eligible to withdraw upto 60% ( 9 lakhs). to tackle this

can i open another PPF account in my name wherein i can make fresh contribution with a lock in period of 15yrs? and still maintain my previous account without any fresh contribution but let it earn interest?

I have option to move 15 lakhs to an FD but it would attract income tax which i am trying to avoid

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183 Manish Chauhan August 28, 2012 at 8:53 pm

You cant open two PPF account in parallel , If you are so sure that you would like to withdraw your money in next 1-2 yrs , in that case just withdraw from PPF , and put the money in bank account. Or choose to not put any more money in next 5 yrs and let it continue without contribution . keep your 1 lac per year in a FD for next 5 yrs, this way your money will also be invested (not in ppf, but atleast in FD) and you will have the freedom to choose to withdraw from PPF fully anytime you want.

Moving your PPF amount to FD will not attract income tax, the income which is earned by FD ,that would be taxable , but thats the only way you can acheive this.

Manish

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184 shailesh August 31, 2012 at 6:22 pm

hi Maneesh,
please clerify on following
1) can i start PPF for my 4 year old son and 2 year old daughter separtely
2)what if i will pay Rs.1L for coming 5yeras only for them and after i stop paying what will be an impact by end of 15 th year or is it allowed or viable
3)can i start PPF account for my wife though she is dependent
4)what if i will invest Rs.1L per annum only on my name for coming 15 years what will be cummulated amount with an intrest
thnx

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185 Manish Chauhan September 2, 2012 at 11:33 pm

1. Yes, but total contribution cant be more than 1 lac including yours PPF
2. You can do that, but min 500 you have to pay in both PPF
3. No , you cant do that, the PPF has to be opened by her
4. You can use this calculator – http://jagoinvestor.com/calculators/html/Increasing-SIP-Calculator.html

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186 Raj September 3, 2012 at 4:07 pm

Hi,

First of all, a big Thank you as you have saved me from standing in a long queue in SBI to get the same information , and perhaps inaccurate as you had also said, about the PPF maturity and it’s continuation.
However I still have question and hope you will reply to me :)

After the maturity at the end of 15 years, shall I have to put an application to request for an extension of an another 5 years or will it get extended automatically?
Thanks,
-Raj.

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187 Manish Chauhan September 3, 2012 at 4:10 pm

It will get extended automatically, but that will be by default “without contribution” option . If you want to make more deposits, you will have to fill up a form

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188 DR JAYESH September 17, 2012 at 2:16 pm

Dear Manishji,
If the account is renewed by default and money is accepted and deposited without any forms filled, what is the solution? Bank has accepted the deposits year after year and accumulated interest since year 2006 without any forms filled. Now the bank has no clue what to do?
Can you advice?
best wishes and gratitude

Dr Jayesh

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189 Manish Chauhan September 18, 2012 at 10:17 am

Is the money credit shown in your PPF passbook or not ?

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190 DR JAYESH September 18, 2012 at 11:34 am

yes money and interest credit is regularly updated in my pass book!

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191 Manish Chauhan September 18, 2012 at 12:34 pm

In that case , you should pursue it with Post Office, may be post a RTI query on this to know what exactly will happen now . Also start a discussion thread on our forum – Thttp://www.jagoinvestor.com/forum/

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192 DR JAYESH September 18, 2012 at 12:59 pm

Account is with the State bank of India. Many thanks for your prompt attention. Gratitude. Dr Jayesh

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193 Kirpal September 6, 2012 at 3:05 pm

Hi,

I had a PPF account, which finished 15 years in 1983, and i extended by a block of 5 years as per bank instruction, and then i closed the account in 1988.

since then, i have not had any ppf account in my own name. my daughters who were minors have become majors so their accounts are now in their names.

can i open my own ppf account?

is it possible to open an account after it has matured and also been closed already?

Request you to please advise me

Thanking you in advance,

Kirpal

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194 Manish Chauhan September 8, 2012 at 9:54 pm

You will have to open a Fresh PPF account, you cant open a old account which was closed

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195 DR JAYESH September 17, 2012 at 1:13 pm

Dear Sir, PPF account was not renewed after maturity in 2006! However money is deposited and interest paid till year! Bank does not have a clue what to do in this situation! can you guide me.

Regards

Dr Jayesh

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196 Karthik October 7, 2012 at 2:34 pm

hi manish, gd mrng.
i have a NRI account opened when i was in dubai before 5 yrs, later i went back to india to work. i worked in india for last 2 yrs. now again i came back to abroad for 6 weeks work and 2 weeks off rotation job, i’ll come to india. but still i’ll consider as NRI i think. my family is in india only.
1. is it possible for me to open a PPF account in my name?
2. If not possible, then is it possible on my 7 months old daughter name and myself as guardian?
what is the possible solution to contribute in PPF account. please suggest.

Reply

197 Manish Chauhan October 8, 2012 at 9:42 pm

Karthik

Yes, you will be NRI only as per definition and in this case you cant open PPF account, I am not sure if you can be guardian or not , better ask it on our forum http://www.jagoinvestor.com/forum/

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198 Babita October 11, 2012 at 6:22 pm

Hi Manish,
Its great to get all this information in so detail.. I appreciate your dedication..

I want to open a PPF account.
1. I heard that the PPF maturity amount can be withdrawn only from that place/branch of the bank where you have opened it. Is it true?
2. Is it necessary to have an account in the bank where you want to open a PPF account?

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199 Manish Chauhan October 12, 2012 at 10:51 am

Babita

I guess the first one is true ! . I will have to investigate more on this .

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200 jains December 11, 2013 at 11:17 pm

#2 Its not necessary to have account in the bank where you have PPF account. I maintained PPF account at SBI without a savings account

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201 Harmit October 14, 2012 at 2:13 am

I have a PPF account with Post office that ended on March 20, 2011. I was not aware of the partial withdrawal facility and decided to continue without contribution. However it recently came to my knowledge that I can contribute as well as withdraw upto 60% during the block of five years. I wish to contribute now would it possible for me to continue with contribution, penalty etc?

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202 Manish Chauhan October 16, 2012 at 2:18 pm

You can do that only after the first block of 5 yrs .

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203 Harmit October 17, 2012 at 4:39 pm

Thank you for the information. This means I can deposit in 2016-17; will I have to pay any penalty and minimum deposits for the previous block?

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204 Harmit October 17, 2012 at 4:51 pm

I hope I have also understood this correctly that as I have neither informed PO or filled any form, my deposits are incurring interest and I can withdraw as much as I want in the current block of five years.

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205 Harmit October 17, 2012 at 5:36 pm

* earn interest.

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206 Manish Chauhan October 19, 2012 at 9:22 am

Yes

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207 Y.S.R.SRINIVASULU October 18, 2012 at 12:11 pm

I OPENED A PPF ACCOUNT AND COMPLETED 15 YEARS ON 01.04.2011. BUT I PAID THE SUBSCRPTION FOR THE 16 TH AND 17 YEAR ALSO. I HAD NOT GIVEN ANY FORM H. NOW I WANT TO CLOSE THE ACCOUNT. PLEASE FIND SOLUTION.

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208 Manish Chauhan October 19, 2012 at 9:01 am

You can withdraw only 60% money in the extention period .

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209 Arati October 18, 2012 at 1:08 pm

Hi Manish,

Thanks for sharing the info. I hve one query.
I have to open a PPF A/c. Can u suggest which one is better PO / SBI or ICICI.
I am little confused. I find ICICI – online banking more convenient but at the same time I am not too sure of the service or reliability as this is for long run.
So what would you suggest.

Regards
Arati

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210 Manish Chauhan October 19, 2012 at 8:58 am

I think you can open it in ICICI bank

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211 naresh bhadiyadra October 18, 2012 at 8:38 pm

Dear Sir,

I had opened the PPF account with SBI in FEB 91. It was extended for 5 years on maturity. Last year I forgot to inform the bank to extend it further. Today when I deposited the cheque in my PPF account it was returned with a note that the account has matured. Can u please guide me so that I can put my case with the bank
1. Whether the PPF accounts are extended by default ?
2. Can I claim the interest on PPF for last one year?
3.Can the same account be extended at a back date?

Regards

Naresh

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212 Manish Chauhan October 19, 2012 at 8:42 am

By default it gets extended atleast after the 15 yrs maturity, but I am not sure if it automatically extends after the extended period .

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213 naresh bhadiyadra October 19, 2012 at 10:20 am

I have a PPF account with SBI from Feb 91. It was due to mature in Mar 06, when I got it extended for 5 years till Mar 11. In Mar 11 I forgot to get it extended. Two days back when my cheque for PPF subscription was returned by the bank, I came to know about it. How can I get it extended now ? Last year my subscription was accepted by bank in Mar 12 and was also given the intrest till Mar 12. What about the intrest from Apr to Oct 12?

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214 Manish Chauhan October 19, 2012 at 10:22 am
215 Sunny Gill October 22, 2012 at 5:37 pm

I would like to open a PPF account in my and my two childerns name (i.e 3 accounts). Can I deposit Rs 1 Lac in each account or is they a limit of Rs 1 Lac that has to be split into the three account (i.e Rs 33333/- each per yr).

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216 Manish Chauhan October 25, 2012 at 9:05 am

The limit of 1 lac is combined, you cant invest more than 1 lac in total , you can do one thing , open a child account with your wife as the guardian and then invest in that

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217 Sunny Gill October 25, 2012 at 9:53 am

Thanks for your reply.
So what you are saying…
1. I can invest 50000/- per year in my PPF account.
2. Plus 50000/- in one of my childerns account (me being the guardian)
3. Club the the second child with my wife so she can invest 100000/- into the
second childs account.
Is that what you advise…..

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218 ravi November 3, 2012 at 3:58 pm

Dear,
My PPF account matured in August 2012, now can I get at-present matured amount or after 31 march 2013

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219 Sharad Agrawal November 7, 2012 at 11:43 pm

Hi,
As PPF account matured in 15 years. If I extend my PPF account for the next 5 years. Then the interest earned during 15-20 years of my PPF account will be taxable or not?
For ex: I invest Rs. 50000 per annum for the 15 years then my maturity amount after 15 years will be approx. Rs. 1545054.00. If I extend my PPF and also invest Rs. 50000 per annum for the next 5 years. then the interest earned on my PPF account during 15-20 years will be taxable or not?

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220 Manish Chauhan November 12, 2012 at 8:42 am

It will not be taxable !

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221 varun November 19, 2012 at 6:21 pm

Hello Manish
Can i deposit unaudited cash in my ppf account?I mean..da cash which i have not withdrawn from my bank account and is not from CASH IN HAND..?

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222 Manish Chauhan November 20, 2012 at 2:18 pm

I still dont understadn what you are saying ? You mean through cheque ?

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223 Harpreet Kaur November 24, 2012 at 10:34 am

Amazing piece of information. Thanks you so much….

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224 Manish Chauhan November 25, 2012 at 11:00 am

Thanks :)

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225 Narendra Shah December 3, 2012 at 9:56 pm

Dear Manishji,

My son have PPF account with 2 time extension period of 5 years.He can withdrw 60 % of his total investment.Now 2 years are remaining for his maturity.Can he elegible to withdraw total amout before maturity period?
Awaiting your reply soon.Regards
Narendra Shah

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226 Manish Chauhan December 11, 2012 at 4:31 pm

No , he can only withdraw 60% before maturity . Only when the PPF matures , he will be able to withdraw fully !

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227 nikhil December 11, 2012 at 10:12 pm

hi manish,
i have a ppf a/c which got matured on 01/04/2012.i have not filled form H & contributed further in between april 2012 to december 2012.now i would like to know that would i be able to claim the deduction under section 80C on the contribution made in between april 2012 to december 2012 & further what would i have to do to extend my account further for a period of five year keeping in mind that i have made the contribution without filling form H.

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228 Manish Chauhan December 19, 2012 at 5:01 pm

Yes, you can avail 80C benefit !

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229 natarajan December 18, 2012 at 6:14 pm

18.12.2012
M.N.Krishnan,
Mettur Dam.
Sir,
I am assessed to Income Tax.
I am paying PPF from March 1991.
By 2007 it was extended for 5 years.It ends by 2012,March by giving a requisition letter.
Again by April 2012 I have paid PPF for the year ending 31.03.2013.
Now I want to withdraw the full amount.
The SBI officials told me that now it can be withdrawn fully but interest will not be paid because the interest is entered by 31 st of march every year.
Now I have some doubts
Can I close the PPF account now in the middle of a year.
If I withdraw fully by April 2013 , whether the amount paid towards PPF during this year will be taken credit for 80-C for the accounting year ending 31.03.2013.
Can I open a new ppf account after 01.04.2013.After closing the old account by withdrawing full amount.
I want the entire amount for paying a loan.
Further can I invest more than one lac per year.Is there any limit.Will interest will be paid for the payment morethan one lac.
Apart from my PPF account can I open PPF accounts in my wife’s name and minor daughter’s name seperately.will they fetch interest.
How my IT assessment will affect.
Kindly oblige me with your guidance.
Thanking you with regards,

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230 Manish Chauhan December 19, 2012 at 12:51 pm

You can withdraw full amoutn from your PPF only at maturity now

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231 natarajan December 20, 2012 at 10:45 pm

sir,thanks for your prompt reply

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232 Saurabh December 24, 2012 at 4:22 pm

Hi Manish,
Nice article.
I would like to know whether we can vary the amount to be deposited in PPF
each year?
eg: say if I deposited 50000rs in first year and next year increased it it to 80000rs.
Again decreased it to 10000 for third year.Is it allowed?

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233 Manish Chauhan December 25, 2012 at 6:08 pm

Yes its allowed !

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234 Saurabh December 26, 2012 at 2:31 pm

Thanks Manish.

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235 Vaibhav December 25, 2012 at 6:11 pm

@Saurabh – Yes, you can vary the amount you deposit in PPF every yr, based on your convenience. So the investment amounts u hv given in the above example are allowed.
Just make sure you deposit minimum Rs.500 every yr so that the account remains active.

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236 MK December 27, 2012 at 9:06 am

Hi Manish,
it is really useful article, going through the article and many comments, now I am wondering whether the interest calculated on my PF account and advise given by post office is indeed correct. Need your expert advise. ( sorry for the long comments but I wanted to provide the complete information!!)

I have a PPF account opened in Aug 1998 with following contribution history for first 2 years.

FY 1998-99 , INR 1000, 14/Aug/1998
FY 1998-99 INR 25000, 05/Sep/1998
FY 1998-99 INR 25000, 18/Jan/1999
Interest calculated by post office for FY 1998-99 INR 2070.

FY 1999-00 , INR 25000, 19/Jul/1999
FY 1999-00 INR 20000, 27/Sep/1999
FY 1999-00 INR 5000, 13/Nov/1999
FY 1999-00 INR 10000, 01/Feb/2000
Interest calculated by post office for FY 1999-00 INR 9473.

with respect to the above I have the following questions.

1. Post office advised me that my PF account will mature in Aug 2013 and I should be able to withdraw whole maturity amount in Aug 2013. By going through your post and comments , it seems it will mature only on 31st Mar 2014 and I would be able to withdraw the amount on or after 31st Mar 2014. Which one of this is correct ?

2. Is is the interest calculated by post office is correct for FY1998-99 and FY1999-00? Again based on the comments and post, I calculated these as follows.
Interest FY1998-99 INR 2320 ( I have taken interest rate as 12% for the whole year)

Interest FY1999-00 INR 9766 ( I have taken interest rate as 12% upto Dec 1999, 11.5 % for Jan 2000 as interest rate changed to 11% wef 15-Jan-2000 and 11% for Feb & Mar 2000).

I would appreciate if you can clarify these queries.

Thanks & Regards
Manish

Reply

237 Manish Chauhan December 29, 2012 at 8:18 pm

MK

For the point 1, its Mar 2014 . For now its not possible for me to give you answer on 2nd and 3rd, better use RTI to get your answers

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238 PRAKASH GHOSH December 27, 2012 at 8:50 pm

Dear sir,
I have a PPF a/c No.10949651042 with SBI Tura Branch opened on 28-03-2003. And present balance in my a/c is Rs.158677.52. Now I like to draw a partial amount. How much can I withdraw? And what is the current rule let me know.
Awaiting for early reply.
Thanks.

Prakash Ghosh

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239 Manish Chauhan December 29, 2012 at 7:58 pm

You can withdraw minimum of 50% of your balance which was 2 yr back balance your last year balance .

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240 PRAKASH GHOSH December 30, 2012 at 6:57 pm

Dear sir,
On 28th December I have withdrawn the amount Rs 29000.oo only according to their rule on balance which was 5 years back i.e. 31-03-2007 that time my balance was Rs. 58179.52. In this regard kindly send me the present rule so that I can show them for confirmation.
Thanking you.

Prakash Ghosh

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241 Manish Chauhan January 3, 2013 at 6:40 pm

But what is the problem in your case ?

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242 PRAKASH GHOSH January 4, 2013 at 9:46 pm

Dear sir,
I applied for partial drawn of Rs.75000.00 only.But SBI Tura BR. allowed me Rs.29000.00 only.According to your earlier reply I should be allowed 50% of my balance which was 2 years back that time my balance was Rs.122968.00. For this reason I wanted to know what is the actual rule for withdraw of the money.
Thanking you.
Prakash Ghosh

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243 Manish Chauhan January 7, 2013 at 7:23 pm

Yes, thats the rule, ask them why they are not allowing you that much , also take help of RTI if needed

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244 kirty January 12, 2013 at 1:39 pm

hey wonderful article on the subject Manish. It answered all major doubts on the subject.

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245 Manish Chauhan January 14, 2013 at 2:31 pm

Good to hear that :)

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246 KGV Prasad Rao January 16, 2013 at 3:45 pm

Hi Manish,

I Opened a PPF account with SBI on 30.03.83 and maturity date is 1.4.98. I extended the a/c for 5 times and now the marturity date is 30.03.2013. I have withdrawn Rs 1,45,000 on 18.07.2011 (60% of the bal in a/c). The present balance in my a/c is Rs 3,25,000. Now I want to remit Rs 50,000 in Mar 2013 and get exemption under Sec 80C of IT Act. Shall I withdraw the entire amount in Apr 2013 and close the account ? Am I in order ? Please advise…………..

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247 Manish Chauhan January 18, 2013 at 10:22 am

If you are due for new extention , then you can take full amount, if you deposit anything in new extention , then again you will be able to take only 60%

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248 Loknath January 24, 2013 at 4:35 pm

Dear Sir,
I had opened a PPF a/c in Mumbai on April 1993 for 15 years and then extended for 1 block of 5 years. Considering one year locking period, I believe that the maturity would be on April 2014 (20+1) year. Is it correct. Or It is April 2015 (i.e. 15+1, +5+1) i.e. after 22 years. I look forward to your confirmation.

Regards
Loknath

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249 Manish Chauhan January 24, 2013 at 5:02 pm

Yes, you have extended it for 5 yrs block, so now the maturity will extend by 5 yrs .. so it would be April 2019

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250 Dr.Dilip Italiya January 25, 2013 at 9:54 pm

GRT…NOW SURPRISED VERY GRT FACTS ABOUT PPF… THANK YOU MANISHJI

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251 Manish Chauhan January 30, 2013 at 5:17 pm

Thanks Dilip !

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252 DB DESAI January 29, 2013 at 8:52 am

Any circular reference giving clarification on the issue of payment of interest at the time of withdrawal of matured ppf account after 15 years? SBI says interest can be paid in March only. I think it should/is paid till the date of withdrawal and closing of account. Customer does not want extension, contribution etc. He has completed 15/16 years in March 2012 and wants to withdraw full balance in say NOV 12. I think he should get interest from April 12 to Nov 12 (actual date of withdrawal). Please quote some reference of circular regarding this issue.

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253 Manish Chauhan January 30, 2013 at 1:53 pm

Yes he should get the final settlement , you dont need circular on this :) .. its common sense . Is SBI saying that you will not get the interest at all ?

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254 nisha January 30, 2013 at 7:39 pm

i hav 2 ppf account .one mine and other minor (son ).i took tax rebate by one only.
i renewed my ppf for 5y,but mean while i want to close it..can it be possible??…pl.
suggest some idea….i read some your reply regarding 2 ppf ac.,bank suggest me to open ac.for minor…is there any problem if????wht should i do???

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255 Manish Chauhan February 7, 2013 at 6:21 pm

You can claim tax exemption upto only Rs 1 lac on ppf accounts

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256 navin kumar February 7, 2013 at 2:03 pm

my ppf account in sbi is 10 year old. can i wirthdraw amont in march2013 (as per my eligibility)and later in April2013((as per my eligibility)

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257 abc February 7, 2013 at 2:19 pm

Someone tries to pick hole in one crore example. Well, if you live up to 150 years regularly depositing the maximum from when you are 2 years, you will be shocked as to spend all those crores! THe Guru is always wise.
Jokes apart, the column is excellent.

abc

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258 sevan February 9, 2013 at 7:36 pm

Hi Manish,
Thanks for the information.
One query. In case i deposit 1 lac every year for 25 years what will my final sum be? (considering that I invest every year on april 1st and i do not make any withdrawals. Also presuming current rate of interest to prevail throughout). Is there any calculator in your website to calculate this?

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259 Manish Chauhan February 11, 2013 at 5:07 pm

There is no calculator for it, but why dont you use a rough estimate . just calculate it on the basis of 8.8% per year. Do you know the formula ?

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260 sevan February 11, 2013 at 5:45 pm

No. Even I don’t know the formula. Hence thought if you can help me out.
Thanks.

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261 Shankar Singh February 13, 2013 at 6:43 pm

Dear Manish,

I was open a PPF A/c on 2008 , now (feb-2013) I want to close this A/c permanently , Is it possible ?

Please reply

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262 Manish Chauhan February 18, 2013 at 2:14 pm

Not possible

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263 NAVIN February 21, 2013 at 2:43 pm

Sir
I am from Punajb. I opened a PPF account for my son when he was minor and was residing with me here in Punjab only. Now my son is major by age and has shifted to Gujarat for his studies. The original account is without the middle name but now as he has shifted to Gujarat and according to their culture he is writing father’s name in the middle. All his documents like passport, PAN bear his name with father’s name in the middle. Now my query is to whether his name can be changed as per current in his already existing account or I have to close that account and open a new account. Doing so will be a loss in the form of non taxable interest he is earning right now……..pls advise.

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264 Manish Chauhan February 25, 2013 at 6:35 pm

It should not be a big issue … even though the name on his documents containing father name as middle one, its fine .. what matters is that he has his FIRST name and the surname in the documents !

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265 Kumaresan February 25, 2013 at 8:48 pm

Awesome article!

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266 Manish Chauhan February 27, 2013 at 10:25 am

Thanks Kumaresan

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267 Yogesh March 2, 2013 at 6:11 am

Hi Manish,
Must compliment you on an excellent article throwing much light on PPF operation.
A month back one of my acquaintances tried to close his a/c & encash the amount. This a/c was transferred from SBI Nariman Pt. Br to Andheri Br. The officer told him that he will only get the amount available prior to the previous two 5-yr extensions ! Is there a specific rule in the PPF Act which we can quote to the SBI person to remove this faulty impression from SBI official’s mind so that my friend gets his full entitlement from the PPF a/c ?
Thanks very much.

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268 Manish Chauhan March 3, 2013 at 10:14 pm

The first question is “Why he will get lower amount” ? What is the explaination for that ? I suspect that there was no form H filled up which is to be done if one wants to contribute into PPF account after maturity ..

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269 Yogesh March 4, 2013 at 12:17 am

Thanks for the prompt reply.
Pl inform what is form H ? Shouldn’t SBI have informed my friend about this requirement while accepting contributions for 10 years ? Is there any way that Form H can now be filled in?
Would appreciate v.much if you could enlighten on this aspect.
Thanks once again.

Yogesh

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270 Manish Chauhan March 13, 2013 at 2:29 pm

Form H is filled when you want to continue your PPF for another 5 yrs ” with contribution”

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271 Ujjwal March 2, 2013 at 10:06 pm

Dear Manish,
Thanks for your nice article. One think I would like to know that If I choose PPF without contribution then after 5 years can I opt for PPF with contribution. As you have said that reverse one is possible pls let me know the answer for the 1st one.

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272 Manish Chauhan March 3, 2013 at 9:59 pm

Yes thats possible in next extention !

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273 m k March 7, 2013 at 9:41 pm

Nice article. I have a question –

My PPF account is about to mature (15 yrs) on 31/03/2013. Can I invest 70,000 as tax saving for FY 2012-13 on 25/03/1013 and then close the account and withdraw entire amount on 31/03/2013 ?

Thanks,
MK

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274 Manish Chauhan March 8, 2013 at 7:23 pm

No you cant do that.. once you invest in that account again , then it will be “with contribution account” and it will be locked for another 5 yrs ! ..

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275 Biak March 9, 2013 at 12:54 pm

Hi Manish,

I have a query too, see ma sister has a ppf acount and had been deposited for the past 2years, bt now as she went to our native place she stopped depositing the money,can she withdraw the full amount? will there be any deduction? can she withdraw from Manipur itself or she have to withdraw anyhow from the branch where she opened the account??

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276 Manish Chauhan March 13, 2013 at 12:33 pm

She cant withdraw before 15 yrs !

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277 Arvind March 12, 2013 at 6:38 pm

I have a PPF A/c with SBI since 1995-96 (July’1995 to be precise). When I went to deposit money this month, I was told that the account had matured in 2011 and now cannot be extended. But I was allowed to deposit money in 2012 as well. So my queries are
1) As the deposit was allowed in 2012, after the maturity in 2011, doesn’t it means that the account has been extended or shouldn’t the extension period be upto Mar’2013 that 1 year from the last deposit?
2) Because of the benefit of tax free interest, I do not want to close my existing account. So can this account continue as one without further contribution and for future investment open a new PPF account?

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278 Manish Chauhan March 13, 2013 at 10:55 am

You actually had to fill up form H if you wanted to keep it active with contribution .. Now your account is extended “without contribution” .. so you will have to wait for 5 yrs now , if you want to again deposit something there ! .

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279 Reena March 13, 2013 at 9:52 am

Hi Manish,

My PPF got matured after 15 years and I forgot to fill form H. As I understand in this case the account by default gets extended without contribution for a block of 5 years. Now after this first block of 5 years is over can I convert it back to account with contribution for the next 5 year block by filling form H?

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280 Manish Chauhan March 13, 2013 at 10:23 am

Yes. . once those 5 yrs is over, now its a fresh start .. now you can do what you want !

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281 Reena March 13, 2013 at 12:28 pm

Hi Manish,

Thanks for the prompt reply.

My account is with SBI and honestly there are not many who understand the PPF rules thoroughly.

So is there any such written part in the PPF rules which confirms that after 5 years of non contribution the account can be changed to contributing again. This will help me in convincing the SBI guys.

Regards

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282 Kavita March 13, 2013 at 4:47 pm

Hi Manish

I already have a PPF account. Can I open one PPF account in my daughter’s name also, who is 5 years old??

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283 Manish Chauhan March 19, 2013 at 12:42 pm

YEs , as a guardian

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284 Kavita March 19, 2013 at 1:28 pm

so, in that case what will be tax calculation, whether interest earned on that minor’ PPF account will be taxable.

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285 Manish Chauhan March 21, 2013 at 9:19 am

No it will not be . PPF is totally tax free

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286 Kavita March 22, 2013 at 3:57 pm

Manish, just to reconfirm, If I open one PPF account in my daughter’s name as a guardian and one account I am already holding, so in total I can deposit 2 Lakhs max, 1 Lakh in my account and 1 Lakh in my daughter’s account.

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287 Manish Chauhan March 23, 2013 at 9:11 am

No , your cant deposit more than 1 lac, the total has to be 1 lac only .

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288 Kavita March 23, 2013 at 12:55 pm

So in that case no benefit of opening second account, as I can save in my account itself.

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289 Manish Chauhan March 27, 2013 at 3:17 pm

Yes

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290 Lalit Mendiratta January 8, 2014 at 11:32 am

I am not sure if this is correct. As per my info you can open the ppf account for your minor child and deposit full 1 lakh in their account besides the 1 lakh that you will deposit in your own account. Each account will earn its tax free interest.

However you can claim tax benefit under 80C for a max of 1.0L only

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291 Manish Chauhan January 9, 2014 at 11:32 am

Yes you are correct . I found out later that what you are saying is right

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292 AMAR KUMAR GHOSH March 16, 2013 at 8:49 pm

DEAR MANISH,
MATURITY DATE OF MY PPF A/C IS 31/03/2014. WHEN I HAVE TO APPLY FOR EXTENTION FOR FIVE YEARS WITH CONTRIBUTION?

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293 Manish Chauhan March 19, 2013 at 11:24 am

Do it after maturity itself !

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294 Dr P K Malaviya March 23, 2013 at 3:23 pm

I have opened the PPF account in 1990. After 15 years I opted for further extension.
As on date also I am continuing, it is 23 years. Kindly let me know the rules. I want to continue for 2-3 years more.

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295 Mayank Saxena March 24, 2013 at 10:04 am

As I can read from Manishji’s article, it is extended in batches of 5 years. So if it is continuing, it should continue till 25 years. After that 25 years, you would have an option to withdraw all, or continue without contribution or continue with contribution. Am I right Manishji?

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296 Manish Chauhan March 27, 2013 at 12:28 pm

Correct

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297 Manish Chauhan March 27, 2013 at 12:56 pm

You have to continue in block of 5 yrs only , not 2-3 yrs

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298 Sunita March 28, 2013 at 10:22 pm

Hi Manish,

Great article. Thanks.
One basic question however regarding determination of the first maturity date of a PPF a/c. I opened my PPF a/c in FY 1998-99 and 2012-13 is the 15th financial year since then, 98-99 being the first one. I assume that end of 15th FY i.e. 31-Mar-2013 is when my PPF a/c matures. Kindly confirm.

Thanks and Regards,
Sunita

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299 Manish Chauhan April 3, 2013 at 12:05 pm

The starting date for your PPF will be considered as the 1st april of the next year when you opened your PPF , so if you opened it on June 1999 , then your opening date is 1st apr 2000 .

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300 SUMIT DEB April 1, 2013 at 2:29 am

Hi Manish,
Simply a superb article for a newbie investor like me. Congrats!!!
I had opened a PPF Acc. on 22-Sept-2012.
1)What will be the starting date of my Acc.? (Is it Mar2013?)
2)Which year will the Acc mature?(2026 or 2027 ?)
3)Which is the best way to invest in PPF? – lump-sum on April 1st every year or a regular monthly investment?

Reply

301 Manish Chauhan April 3, 2013 at 9:47 am

It will be mar-2013 , but only for considering the maturity date .

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302 A Syal April 9, 2013 at 4:02 pm

Hi Manish,
I had some queries on the ppf account. I opened my account in sep 2007. Considering this information
1) what would be the year of maturity? Will it be March 2022 or March 2023?
2) Also after maturity I would like to close this account, since I can invest the maturity money some place else. Wat is the procedure for the same?
3) Post maturity once the application for account closure is given to post office, how much time it takes for them to settle the account?
4) Does the post office people give a cheque in the name of the account holder or do they do a direct credit into the S/B account of the account holder? I know for PF withdrwal now days PF department credits the S/B account directly.
Please advice me on these areas.

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303 Manish Chauhan April 12, 2013 at 11:45 am

1. 2023

2. You can get your PPF money transferred into your bank account

3. No idea on that , but it should not take more than few days

4. A direct debit should be possible

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304 janhavi shete April 12, 2013 at 7:36 pm

hi manish
my sister is working in college as lecturer frm last two years.so nw she want to leave her job. in every month sme ammount cut off frm her salery.so nw tell m hw to withdraw d money frm tht account

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305 Manish Chauhan April 19, 2013 at 12:26 pm

She has to fillup a EPF withdrawal form ..

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306 Manoj Chouhan April 16, 2013 at 1:51 pm

Dear sir
i have PPF a/c stated from 7/1998 so as per norm a/c is due for payment, i approach to bank for closed the my a/c bank are reply u can not closed the a/c actual rule is 15+1 year= 16yrs pl inform me what s correct

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307 Manish Chauhan April 19, 2013 at 11:18 am

Yes, thats correct . The open date for you will be 4/1999 . so it will be 4/2014 when you can close it

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308 PRADEEP JOHN April 29, 2013 at 12:12 pm

Thanks for sharing. I have a 6 month child. If I contribute to PPF for 15 years as guardian. After 15 years still my son would be a minor only. What will happen during maturity.

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309 Manish Chauhan May 6, 2013 at 5:45 pm

So what, you can still withdraw it as guardian

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310 sonu sikarwar August 7, 2013 at 12:31 am

I opened PPF account on 03 april 2013.when will be its maturity date???

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311 Manish Chauhan August 9, 2013 at 10:13 am

1st Apr, 2028

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312 Parveen August 26, 2013 at 3:41 pm

Hi Manish,
I have PPF a/c with IOB which I want to transfer to ICICI. I hold different signatures with both banks. Will it be an issue while transferring my PPF a/c.

Reply

313 Manish Chauhan August 29, 2013 at 11:08 am

I dont think there should be any issue in this !

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314 Soma Mukherjee September 13, 2013 at 3:43 pm

Hi,
It’s a amazing article,from which i came to know a lot about PPF a/c.But here one question arised is a nominee can continuing operate the ppf a/c same like after the subsciber’s death or he has to close the a/c?

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315 Manish Chauhan September 17, 2013 at 7:15 pm

Soma

Nominee cant continue the PPF account, they have to close it !

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316 Liyakath September 14, 2013 at 8:59 pm

Hi,

Great Information.
It is 7th year that I started to contribute in post office PPF. My doubt is, lets say I go for partial withdrawal option in the current year. How this impacts the maturity amount at the end of 15yrs.

Thanks
Liyakath

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317 Manish Chauhan September 17, 2013 at 7:08 pm

just that your money in PPF will reduce by this much amount .

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318 Jipal September 19, 2013 at 2:44 pm

I have a PPF account which has completed 15 years in 2010. After that it has been extended and I have done some partial withdrawal in 2012.

Now I have taken a home loan, I want to do prepayment using that money. But as per bank, my PPF account is now under 5 year lock period, so can neither withdraw any amount nor close the account until 31st March 2015.

By any chance any other way to get the money from PPF account.
Thanks !

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319 Manish Chauhan September 25, 2013 at 2:13 pm

You can withdraw only upto 60% of the maturity balance . Not more than that !

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320 hellosibba September 24, 2013 at 2:51 pm

I have opened an PPF account (in SBI) in beginning of 2008. now i am in verge of immigrating to another country forever. Can I close the account ? is there a way out.
I have closed almost accounts here in india. Now it will become pain to maintain. Also i have quite some amount in this account.
What is the best way to get it closed, even if i have to pay any penalty to government.

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321 Manish Chauhan September 24, 2013 at 7:18 pm

As far as I know, there is no way . Try out forum for solution – http://www.jagoinvestor.com/forum

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322 Dr Manisha JP October 1, 2013 at 7:55 pm

My ppf aCCOUNT OPENED ON 04 aUG 1987 WAS further extended for 5 years then again 5 years. My balance on 31 March 2013 was 30 LACS. i HAVE PAID ANNUAL CONTRIBUTION OF ONE LAC AND AGAIN EXTENDED FOR THE THIRD TIME FOR 5 YEARS UPTO MARCH 2018 What is the maximum onetime partial withdrawal allowed in entire 5year period . Will it be calculated as 60% of 30lacs as on 31 March 2013 OR BALANCE ON 31 mARCH 2014 OF 33.5 LACS

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323 Manish Chauhan October 7, 2013 at 8:17 am

Your total amount available to withdraw will be 60% of balance , now if you have taken out anything in these 5 yrs, rest balance will be available

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324 Dr Manisha JP October 7, 2013 at 6:17 pm

Dear Manishji, Thank you for the information. Is 60% permitted partial withdrawal of balance at commencement of the 5 year extension?

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325 Manish Chauhan October 18, 2013 at 11:27 pm

YEs

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326 Rishi Desai October 2, 2013 at 12:25 pm

Very informative for a beginner like me.

Thank you so much Manishji for sharing this.

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327 Manish Chauhan October 7, 2013 at 8:14 am

Welcome !

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328 harishj October 28, 2013 at 10:01 am

I have PPF account with SBI opened in Gurgaon branch of SBI. If after 15 years, I am in some other part of India, will they ask me to visit the home branch to get it either extended or withdrawn? or it will be possible to visit the nearest SBI branch and get it done?
And what if I am outside India?
If there is a need to visit the home branch in 1st scenario (if I am in some other part of country) and there is a need to visit the branch (in case I am outside country) then is it recommended to shift the account to ICICI who is much more customer friendly and have no such requirement?

My PPF account in SBI is linked to my savings account in SBI. Will the proceeds come directly in my savings account?

Harish

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329 Manish Chauhan November 4, 2013 at 11:40 am

Hi Harish

I dont think you have to visit the branch for this . I think the staff there needs to be shaken up a bit . Please tell them on email that you are filing a RTI on this and also complaining to banking ombudsman . Ask them to give you the things in writing and show you the rules book .

Manish

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330 Apurba February 20, 2014 at 9:54 pm

Sir

Did you succeed in withdrawing from other branch or you had to visit the home branch for withdrawals.

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331 Subhash Mittal December 4, 2013 at 3:56 pm

Dear Manish,
I opened PPF account in post office in FY 2007 and in year 2013 i got transfered this account in SBI,so my query is the maturity time span would be 15 years from the year of opening the account in postoffice that 2022 or it would be 2028 (FY of trancfer of the account in SBI and
How SBI would come to know that mine account was opened in 2007…whether Poast Office will inform the bank or i have to submit any document to bank to tell it that i had opened this ppf account with postoffice in 2007….Pls.Clarify.
Thanks
Mittal Subhash

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332 Manish Chauhan December 12, 2013 at 3:16 pm

It will be 15 yrs from the original starting date. All the info is shared from post office to bank , do not worry on that !

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333 subhash mittal December 12, 2013 at 3:24 pm

Thanks alot Mr.Manish for your reply

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334 subhash mittal December 13, 2013 at 12:03 pm

which option will give me more return at maturity-
if i deposit Rs 60000/- anually one time as lumpsum OR if i deposit Rs 5000/- each month (12 times a year)

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335 Manish Chauhan December 14, 2013 at 10:19 am

If you deposit 60000 in the start itself , then its going to give more interest, but if you are going to deposit at the end, then the second option will give more

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336 subhash mittal December 14, 2013 at 12:53 pm

Thanks for ur reply Dear Manish

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337 Rama December 23, 2013 at 7:33 pm

I have a PPF account with SBI, which was open in 29/Dec/1998. Now, i am in need of some money and would like to close the account at the maturity period of 15yrs. I have paid Rs. 1L as contribution in Nov’13.
Questions:
- Maturity : when is my account getting matured?
- What is the process to close this account ?

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338 Manish Chauhan December 25, 2013 at 9:36 am

Your Account will mature on 1st April, 2014

Just go to SBI and talk to them about closing the PPF after maturity !

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339 Apurba February 20, 2014 at 9:51 pm

Sir

How did you close the PPF account, can you elaborate the process.

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340 Arpit December 30, 2013 at 6:55 pm

Hello, I have a slight doubt about PPF maturity, It would be great if you can shed some light:
- 15 years of my PPF account completed in 2010.
- I extended the account for 5 years and continued contributing.
- I am planning to contribute this year and next year as well.

When the 5 year extention block finishes in 2015, I plan to close the account and withdraw the money. If “X Rs” is the balance in 2015, how much can I withdraw?

And if the answer is not X, then when and how I can withdraw the remaining money?

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341 Manish Chauhan January 4, 2014 at 11:55 am

You can withdraw full X when it matures !

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342 S C BINDRA January 3, 2014 at 5:58 pm

My PPF account with SBI is maturing on 01.04.2014 and I would like to extend it without any further contribution. Is there any Govt website where the PPF withdrawal rules are given so that the same can be shown to the SBI officials? I have been told that I can withdraw only 60% in one year and that I can withdraw it more than once a year. I know it is wrong but how to convince them. A letter to the bank for a clarification has elicited no response. Thanks.

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343 Manish Chauhan January 4, 2014 at 10:58 am

Actually when I wrote this article, I referred to some PDF documents at Post office website which I found by search engine . But Now I am not able to . But you always have an alternative to get this information using RTI . Even that info will be treated as proof of source !

Manish

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344 Avisek Das January 13, 2014 at 1:27 pm

I have PPF account in SBI . Currently i have shifted permanently to another location. Can you tell me what is the procedure for transferring the account to other bank?

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345 Manish Chauhan January 14, 2014 at 12:13 pm

Its as simple as going to the target branch and fill up a transfer of PPF account form !

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346 Manish January 27, 2014 at 6:49 pm

Hi Manish,

I have a PPF account in Post office which got matured in March 2013 at 15 years completion. I want to extend it with contribution and filled up form H in January 2014 but the person at the counter refused to extend it as it has a default of FY 2009-10. I was told about this default only when I went to extend the account in January 2014. I offered to pay INR 500 for FY2009-10 and all the penalties, still he refuses to extend. Kindly let me know what does rule say in this case and what can I do.

Manish

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347 Manish Chauhan January 30, 2014 at 5:34 pm

I am not aware exactly how it will be in this case, but I dont feel if its correct what he did . You should be able to pay the penalty and then extend it. I am not 100% sure on this. but you should have asked for the written thing from the person there . now you can file a RTI and ask for this !

Manish

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348 Singla January 30, 2014 at 10:59 am

Hi Manish,

My wife’s PPF account had been matured in 2012. From your article i understand that as we did not take any action so account must had been extended with the option “not to contribute anymore”. Now if I want to start contributing again into PPF account of my wife:
- Do i need to close the existing account and open a new one? Is it even possible to close the account before 2017 i.e. 5 years from 2012?
- If i can close the existing account; then do i need to visit the home branch where account had been opened or any SBI branch is fine?

Thanks,
Singla

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349 Manish Chauhan January 30, 2014 at 4:17 pm

You cant close the PPF account now before 5 yrs are expired . You can now only take action in 2017 . That time you again will have option to start investment or again continue for next 5 yrs . Do not open a new PPF account , because there is no need !

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350 Singla January 30, 2014 at 4:26 pm

thanks manish. and i cant even put more money into it till 2017, right?

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351 Manish Chauhan January 30, 2014 at 5:06 pm

I guess YES , you cant !

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352 Guruprasad Burli February 3, 2014 at 9:59 pm

Hi, I am investing Rs 1 Lac every year in PPF. At the end of 15 years from the opening of account can i withdraw the complete Rs 15 lacs+interest even though the last installment of Rs 1 Lac would be 1 yr or less than 1 yr old.

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353 Manish Chauhan February 14, 2014 at 8:48 pm

Yes

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354 Apurba February 20, 2014 at 10:00 pm

Manish sir
If I extend my PPF account after 15 years with subscription option (once or multiple times) do I claim income tax deduction on the amount contributed by me in my tax returns.

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355 Manish Chauhan February 21, 2014 at 10:19 am

Yes surely. Each year, you get the deductions

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356 naina February 26, 2014 at 12:46 am

Dear Manish,
very nice article with a detailed explanation..Thanks!!!
Can you pls guide me how to calculate maturity date.
Thanks again.

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357 Manish Chauhan March 2, 2014 at 7:17 pm

Maturity date is 15 yrs + start of the next financial year when you opened PPF account. So if you open PPF account on 19th Sept 2013, then the next year start is 1st April, 2014 and your maturity date is exactly 15 yrs later from that date , which is 1st April 2029

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358 aarti February 26, 2014 at 2:34 pm

1. I have opened my ppf account on 31st Jan 2014 in SBI. What will be my financial period so that i deposit Rs.1Lac to get interest & in which year my ppf scheme will mature.

2. Is it profitable to invest Rs.1 Lacs in one time so that maximum interest may be earned & which is the right date to invest money in a month

3. The interest income which is earned on ppf is tax free under section 80C. As I m non tax payee, whether any form is to be filled to claim tax free interest or it may be automatically exempted from tax when ppf scheme matures.
Waiting for earlier reply

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359 Manish Chauhan March 2, 2014 at 7:12 pm

1. Financial year from Aprl – Mar

2. Yes, in the start of the year between 1st Apr-5th Apr

3. Yes, It will be exempted , you dont need to do anything

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360 aarti March 3, 2014 at 5:19 pm

Thanks for the reply, Sir, i have made a deposit from Jan’14-March 2014, still i have not received any interest. When interest will be credit to me for period 2013-2014.

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361 Manish Chauhan March 12, 2014 at 9:46 pm

It will come in April 2014

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362 RAVINDRA GUPTA March 19, 2014 at 3:12 pm

DEAR SIR
CAN WE OPEN A NEW PPF A\C FOR HUF. SECONDLY CAN WE EXTEND THE PRESENT HUF PPF A\C .

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363 Manish Chauhan March 26, 2014 at 6:22 pm

You can do that .. you can also extend the PPF

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364 SK Choudhury March 21, 2014 at 2:08 pm

In case of an extended PPF account after 15th year as partial withdrawal of 60% is allowed. Is it possible to deposit back the withdrawal amount at later date.

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365 Manish Chauhan March 26, 2014 at 1:33 pm

Yes, you can do that !

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366 venu March 25, 2014 at 2:27 pm

sir
i have opened ppf account on 30-04-1998 when is the maturity date

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367 Manish Chauhan March 26, 2014 at 12:08 pm

it will be 1/4/2013

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368 venu March 26, 2014 at 3:21 pm

thanks for your reply

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369 Aparna March 26, 2014 at 1:09 pm

Hi Manish,
We have plans to move abroad in another 6 months and I am trying to open a new PPF for my daughter (minor), as mine will mature when I am NRI and so I cant make contributions after that.
When I told SBI, they asked me why I want to open in her name, I said this and they are telling that anyway once I am NRI, I cant contribute any money to PPF. It’ll remain dead till maturity. Even after I come back and become resident again I can not contribute. So there is no use opening it!!! Heights of ignorance right? I told them I know the rules and I can continue to make investments on accounts opened when I am resident indian. This conversation was on phone. They told me to come and open and they will also check with higher officials. Hopefully I am right and they are wrong. What do you say?
Regards
Aparna

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370 Manish Chauhan March 26, 2014 at 1:12 pm

Yes , you are right and they are wrong, as per current rules, an NRI can continue his PPF or any PPF where they are guardian, I wish you had just opened a PPF account and did not discuss anything with them, if they try to impose any thing on you, then tell them your plans are cancelled and please open a PPF , Why did you take their opinion on this ?

Manish

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371 Aparna March 26, 2014 at 4:15 pm

I did not take opinion as such. It was on phone and it just slipped out of my tongue :( when they asked, “Why do you want another minor account when you already have a PPF?”. In fact it was none of their business to ask that qn in the first place. One can have as many as 3 accounts, if one has 2 children. Poor me. I will tell them my plans are cancelled.
In fact just now I checked that NRI can even continue the PPF beyond maturity without contribution. Only the extension with contribution is not possible. This is definitely a boon to people like me who plan to go for 5 yrs and come back for sure. My PPF matures in aug 2018, as it was opened in Aug 2003.
Thanks for your reply.
Aparna

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372 Manish Chauhan March 26, 2014 at 6:06 pm

Great !

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373 Aparna March 26, 2014 at 4:28 pm

Even if I dont say my plans are cancelled, I think they cant deny me a chance to open, because I am currently resident and they cant do anything right?
But I am also worried if their s/w can have bug and reject when I try to invest. The linked savings account is a joint account where primary holder is my mom, who will still be resident. So, savings account will remain domestic account right? I think NEFT from that will happen smoothly.
-Aparna

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374 Manish Chauhan March 26, 2014 at 6:05 pm

YEs they cant stop you ..

As far as I understand, when you become a NRI , each saving account should be converted to NRO by you as per law.

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375 aarti April 3, 2014 at 1:44 pm

Hi, I have deposit Rs.45000/- today (on 3rd April). If i deposit more Rs.45000/- tomorrow (on 4th April). Will i get the full month interest on combined amount of Rs.90000/- which i deposited in two parts. Pls. reply fast as i have only 1 day to invest before 5th April. Thanks

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376 Manish Chauhan April 10, 2014 at 2:11 pm

Yes, you will get that !

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377 sumit bhattacharya April 11, 2014 at 3:08 pm

I want to know that if ppf a/c holder wants to close ppf a/c after 15 years from the date of first initial subscription writing in plain letter to branch manager that proceeds of the maturity of the ppf a/c maintained in his branch may kindly be transferred to the savings a/c that is maintained in the same branch, can branch refuse on the ground that only through form ‘C’ to be applied.
I want to know that for withdrawal form ‘C’ is required.
Please enlighten me

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378 Rupesh Shah April 18, 2014 at 6:32 pm

In my mothers ppf a/c my father is the nominee. I was not aware of this fact. At present both my father & mother has expired. The amount is below two lacs. How can I claim the amount as I am the only legal heir ? Please advise.

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379 Manish Chauhan April 21, 2014 at 12:13 pm

Read this first http://www.jagoinvestor.com/2012/04/joints-accounts-nominations-will.html

You will now have to do some run around , bringing the succession certificate .. talk to lawyer

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