The maturity period of a PPF account is 15 years. A maximum investment of Rs 1.50 lakh can be made in this year.
new Delhi. Public Provident Fund or Public Provident Fund is a popular long term investment option. The maturity period of PPF account is 15 years. A maximum investment of Rs 1.50 lakh can be made in this year. The government decides the interest rates in this account from time to time. The special thing is that every red investment of up to Rs 1.5 lakh is exempted from tax. Not only this, PPF comes under EEE (exempt- exempt- exempt) category i.e. money received on maturity is also tax free.
When you have a PPF account, you have these options:
1. Close the account and withdraw the money.
2. You can increase
the account with a fresh deposit 3. To continue the account without a fresh deposit
Close the account and withdraw the money. In case of
PPF account, you can withdraw money by closing the account. You get principal and interest. To transfer the entire amount to your savings account, you have to submit the form to the bank or post office.
You can increase your account with a fresh deposit,
if you do not need money immediately, then you can increase your account after the account holder maturity. To increase PPF account, you have to submit the form within a year. It is for a period of 5 years. Please tell that in 5 years of the block, you can extend the account till when you want.
To continue the account without a fresh deposit
In PPF this is the default option. The PPF account remains active even after maturing. If you do not select any other option, then your PPF maturity date automatically increases for five years. There is no paperwork required.