PPF Extension Rules: Many people like PPF scheme for investment. In this scheme, investment has to be made continuously for 15 years. This scheme is completely tax free. In this scheme, extension can be done even after maturity. Let us know in this article how many times PPF extension can be done.
PPF Extension Rules: Public Provident Fund is a very popular investment scheme. This scheme comes under the EEE category. After investing for a long time in this scheme, a good fund is collected. The special thing about this scheme is that the investment amount, interest and the amount received on maturity are completely tax free.
In PPF scheme , one has to invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh annually. Currently, this scheme gives an interest of 7.1 percent. Although this scheme matures in 15 years, but even after maturity, this scheme can be extended for 5-5 years.
Now the question is how many times can PPF scheme extension be done. What does the PPF rule say about this? Let us know the answer to this question here.
PPF Extension Rules
For PPF extension, the investor has two options. The first option is account extension with contribution and the second option is account extension with investment. If the investor does not withdraw the investment amount even after maturity, then the account gets automatically extended.
In this, even after maturity, interest continues to be received as per the calculation of PPF and no tax is also levied. Apart from this, the facility of FD and savings account is also available in this scheme. Investors can withdraw money from the account whenever they want.
How many times can an account be extended?
Investors can get their account extended in blocks of 5 years each. There is no limit on account extensions. This means that an investor can get his account extended any number of times. An investor must first apply for an account extension.
Keep these rules in mind
- PPF extension can be done only by Indian citizens.
- For PPF extension, application has to be made before completion of 1 year from maturity.
- After PPF extension, the investor will have to invest at least Rs 500 every year.
- After selecting the PPF extension option, the investor can withdraw money only once.
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