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POSTED BY ON October 11, 2012 8:03 pm COMMENTS (5)
I opened my PPF A/c on 5.3.1999 (i.e. F.Y.1998-1999) and my last contribution(15th instalment) was made on 4/4/2012 (i.e. F.Y.2012-13). As per PPF rules,I can close the A/c or apply for extension of 5 years on the expiry of 15 years from the close of the financial year in which the initial subscription was made (i.e. on 1.4.2014).
My queries :
1) Is my understanding-as mentioned above-correct?If not,where am I going wrong?
2) Since Form-H for extension has to be submitted before one year passes from the maturity date (i.e. any time between 1.4.2014 and 31.3.2015),am I eligible to make the contn. for F.Y.2013-14 without extending the A/c?But if I make the Contn. for F.Y.2013-14,it would be my 16th instalment.Would this not contravene the rules of PPF which envisages only 15 instalments?
3) Even if I am willing to submit Form-H in April 2013,the bank may not accept it since it has to be submitted after the maturity date which is 1.4.2014.So what is the position as far as contribution for F.Y.2013-14 is concerned – Do I make it w.o. submitting Form H(which would mean I am making the 16th Contribution) or do I extend the A/c by submitting Form H in April 2013 (which is technically incorrect since the A/c matures only on 1.4.2014).
Thank you for your clarifications and help.
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Dear Sunil,
The entire contribution matures on the 1st day of the 17th F.Y.(The year in which you make your first contribution is reckoned as the 1st F.Y.). Yes,you will get back the entire amount invested alongwith accrued interest on maturity.
Dear All,
I have a small and basic doubt…
As it happnes with SIP in Mutual Funds as the last SIP should wait for 3 years until the lock in completes… is it the same that is only the first investment comes out after 15 years or it just matures at 15 years regardless of when ever u made the investement and you get full amount invested till them…..??
Please clarify.
In my opinion, the PPF A/c is for 15 years and after completion of 15 years, one can get the PPF A/c extended for further block period of 5 years and so on can go continue for extending next 5 years after completing 1st 2nd block period of 5 years. However, what the bank says, the A/c holder must submit subscription and get written objection from the bank, if any.
Dear Deepak,
Thank you for your kind clarification.But the point about making 16 yearly contributions seems to be not correct.PPF scheme clearly states that it is an annuity of 15 years.Could you please refer to the following link(kindly copy-paste into the browser to open the same) where I’ve enclosed a Statement forming part of the Brochure of PPF issued by Directorate of Small Savings,Govt. of Maharashtra –
https://www.facebook.com/photo.php?fbid=4902452158055&set=o.147164928687742&type=1&relevant_count=1&ref=nf
The table clearly shows that only 15 Contns. have to be made and no contn. during the 16th year with the A/c maturing on the 1st day of the 17th F.Y. I would appreciate your comments and suggestion for further action.Many thanks.
Hi Sundaram A,
Please understand A PPF A/c runs for the first deposit + 15 years. Your A/c Matures on 31-3-2014. After 1-4-2014 you can decide to close the A/c or extend it if wish.
If you want to extend it Form for extension can be submitted only AFTER 1-4-2014, only the you will be able to make a deposit for that financial year.
Effectively you have to make a minimum of 16 yearly contributions till 31-3-2014.
If any doubts please ask.