Public Provident Fund: 4 hidden rules you should know

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For example: PPF account opened on 01st April 2008, 01st August 2008, 01st January 2009 and 31st March 2009 will all have the same maturity date of 31st March 2024 whereas the PPF account opened on 01st April 2009 will have the maturity date of 31st March 2025.

Also Read: Public Provident Fund (PPF) among six investment options for single mothersThere are three options at the time of maturity of PPF account. Before discussing these options, let’s create an illustration as well.Mr. Superman opened his PPF account in January 2009.

After 15 years from the end of the financial year in which the account was opened – the PPF account has matured on 31st March 2024. The balance in the account, including interest is ₹10 lakhs.a) Mr. Superman can withdraw 100% of the amount.

This is the simplest to understand, most commonly known and the only option known to the relationship manager of Mr. Superman.Mr. Superman also has flexibility to stagger the withdrawal throughout the years and make multiple withdrawals – but only till 31st March 2025.In case option (a) is exercised – Mr.

Superman is free to open a new PPF account. Please note at one point of time – one individual is allowed to open only one PPF account.

Also Read: How to reactivate your lapsed PPF account — A step by step guideb) Mr.

Superman can extend the PPF account for a block of 5 years with contributions. Mr. Superman, needs to fill form H and can extend the account for 5 years.The form H needs to be filled within 1 year of maturity i.e.

before 31st March 2025. In case Mr. Superman misses to fill the Form H, then by default option (c) explained below will be applicable.The withdrawal limits are simple in this option – you can withdraw 60% of the accumulated amount at the