If you choose to close the account, then you have to go to the branch / post office of the bank where the account is open.
PPF ie Public Provident Fund (PPF) is one of the most popular investments in India. Investments up to Rs 1.5 lakh per annum in this account are exempted from tax under section 80C. There is no tax on the interest received from it and the amount received on maturity also does not come under the tax net. In view of so many benefits, people open PPF account in bank or post office.
With the help of PPF, people add large amount even from small investment. It is such an investment scheme that gives more and guaranteed returns than other investment options. Whether it is the dream of buying a house, the dream of buying a good and expensive car, or the dream of any family member studying abroad, grand celebrations, etc., with the help of this, the family’s big dreams can be fulfilled. But all these dreams can be broken by a mistake.
You do not make this mistake, only 7 days are left
Actually, PPF account has a lock-in period of 15 years. To keep the PPF account active, you have to deposit at least 500 rupees in any financial year, ie, once in 12 months. Due to not depositing on time, the account becomes inactive.
According to experts, many people with a 15-year long period fail to deposit the minimum required amount, so their accounts are deactivated. The current financial year 2020-21 is due to end on 31 March. Except today, you have only 7 days left. If you have not invested any amount in PPF account this year, then deposit the amount by 31 March.
PPF account is ‘deactivated’ for not depositing minimum 500 rupees in each financial year. However, it continues to earn interest on PPF investments. But account holders are not able to avail loans and other benefits through their PPF account.
On maturity you have 2 options
The PPF account has a lock-in period of 15 years. In this, you cannot withdraw money before 15 years. On maturity, the investor gets two options:
1. Withdraw money from the account and close the account.
2. Keep the account current in the block of five years.
Account closure process
If you choose to close the account, then you have to go to the branch / post office of the bank where the account is open. To withdraw the money deposited in the account and to close it, a written application has to be made. For this, an original passbook will be required.
You will have to give the details of the bank account in which the money has to be transferred. Proof of address and identity will have to be attached along with the canceled check. Whether the lock-in period of the account is complete or not, the bank / post office will check it. If this has happened then the account will be closed. The maturity amount will be transferred to the stated bank account.
Can also keep the account current
In this case, you need to give written information to the bank / post office in a prescribed form within one year of the maturity of the account. You can keep the account running with the deposit amount without any new contribution.
The other option is that you keep investing and take advantage of tax deduction on such deposits. After completion of a block of five years after maturity, the account can be kept operational for another five years. You can run this sequence as long as you want. As long as the account is not closed, interest income will continue to accrue from it.
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