1. In the first option, a PPF A/c will be extended for 5 years without any fresh contributions, even without informing PO/Bank, as it will be considered as automatically extended, and the balance amount will continue to earn the applicable interest for the next 5 years or until withdrawn.
2. While no fresh contribution will be allowed, one partial withdrawal in each financial year of any amount is allowed out of the balance.
3. Also, once the account is continued without deposits for more than a year, option of again continuing the account with deposits, for block period of 5 years, is not allowed.
4. In the second option, a PPF A/c can be extended in block periods of 5 years indefinitely, but PO/Bank has to be informed in writing, through Form H, before expiry of one year.
5. If not intimated, then any new deposits will neither earn any interest nor will qualify for Sec 80C benefits.
6. When intimitated, all benefits will continue as usual for any deposits made, and even if future extensions of the PPF A/c are done without fresh contributions, although the balance will continue earning the applicable interest.
7. In this option, withdrawal cannot exceed 60% of the balance available at the beginning of the extended 5-yr block period, which can be done either in one instalment (in one year) or more than one instalment (in different years), and so on for every extended 5-yr block period, and on the balance amount at the beginning of each extension.
8. Generally, if PPF A/c is maturing much earlier than the retirement age, then it's better to extend the account, by submitting Form H, and keep it active by 500 min. annual deposit.
9. Thereafter, partial withdrawals of up to 60% of corpus can still be done during every 5-yr block extension, if needed, while 40% corpus continues to enjoy the power of compounding during this 5-yr lock-in.
10. The partially withdrawal amounts can be utilized for:-
a) Continuing contributions in the old PPF A/c
b) Investing in a new Debt fund
c) Investing in a new Hybrid Aggressive / ELSS fund.
2. While no fresh contribution will be allowed, one partial withdrawal in each financial year of any amount is allowed out of the balance.
3. Also, once the account is continued without deposits for more than a year, option of again continuing the account with deposits, for block period of 5 years, is not allowed.
4. In the second option, a PPF A/c can be extended in block periods of 5 years indefinitely, but PO/Bank has to be informed in writing, through Form H, before expiry of one year.
5. If not intimated, then any new deposits will neither earn any interest nor will qualify for Sec 80C benefits.
6. When intimitated, all benefits will continue as usual for any deposits made, and even if future extensions of the PPF A/c are done without fresh contributions, although the balance will continue earning the applicable interest.
7. In this option, withdrawal cannot exceed 60% of the balance available at the beginning of the extended 5-yr block period, which can be done either in one instalment (in one year) or more than one instalment (in different years), and so on for every extended 5-yr block period, and on the balance amount at the beginning of each extension.
8. Generally, if PPF A/c is maturing much earlier than the retirement age, then it's better to extend the account, by submitting Form H, and keep it active by 500 min. annual deposit.
9. Thereafter, partial withdrawals of up to 60% of corpus can still be done during every 5-yr block extension, if needed, while 40% corpus continues to enjoy the power of compounding during this 5-yr lock-in.
10. The partially withdrawal amounts can be utilized for:-
a) Continuing contributions in the old PPF A/c
b) Investing in a new Debt fund
c) Investing in a new Hybrid Aggressive / ELSS fund.