PPF Extension Rules: Public Provident Fund (PPF) is considered a very good investment option. This is a government scheme on which guaranteed interest is available. Any Indian can invest in this scheme. PPF is a long term scheme, it matures in 15 years and has the benefit of compounding. In such a situation, good funds can be generated through this.
This is the reason why despite there being many investment options, a large section of people prefer to invest in it. Currently 7.1 percent interest is being given on PPF. If you are also investing in this scheme and want to avail its benefits for more than 15 years, then you can extend this scheme.
But do you know how many times PPF extension can be done? If you have invested then you must know the answer to this-
Know how many times you can get extensions done
In case of PPF extension, the investor has two types of options – first, account extension with contribution and second, account extension without investment. If you want to increase it by continuing the contribution, then you can do it in a block of 5 years. With this, your account is extended for 5 years at a time. You can get PPF extension done any number of times.
How will expansion be achieved through contributions?
After 15 years, if you want to continue the PPF account with contributions, you will have to submit an application in the bank or post office where the account is maintained. You will have to submit this application before completion of 1 year from the date of maturity and fill a form for extension.
The form will be submitted in the same post office/bank branch where the PPF account is opened. If you fail to submit this form on time, you will not be able to contribute to your account.
How to get extension without contribution
If you do not want to make any investment in PPF Account after 15 years, but want to take advantage of its interest, then you also get this option. For this it is not necessary for you to inform the bank or post office. If you do not withdraw the amount after maturity of 15 years, then this option is automatically implemented.
Its advantage is that whatever amount is deposited in your PPF account, you get interest as per the calculation of PPF and also get tax exemption. Apart from this, you can withdraw any amount from this account anytime. If you want, you can also withdraw the entire money. In this you get the facility of FD and savings account.
