PPF account extension rules eased: Key things to know
In view of the lockdown restrictions, the government has eased the time limit for Public Provident Fund investors who want to extend their account. The subscribers PPF accounts – whose deadline for submitting the extension form is due in lockdown with one-year grace period after maturity – may submit the prescribed form for extension through registered email id by 31st July, the postal department said.
The original copy of PPF extension form can be submitted to the concerned operating agency once the lock down is completely lifted, it added.
PPF accounts mature in 15 years and they can be extended beyond 15 years in blocks of five years. They can be be retained with or without making further contributions. The corpus will earn continue to earn interest till the account is closed.
If PPF account holders want to continue with the contribution mode after maturity, they will have to submit Form H within one year from the date of maturity of the account. Otherwise, fresh deposits into PPF account will not earn any interest. Also, the fresh deposits in the PPF account will not be eligible for deduction under Section 80C of the Income Tax Act.
If PPF account holders don’t close the account or submit the form after the account matures, no fresh contribution will be allowed but the balance will continue to earn interest.
Meanwhile, the Central Board of Direct Taxes (CBDT) through a notification also extended the time limit by a month till July 31, 2020, for making various investments for claiming deductions under the I-T Act, which includes Section 80C (PPF, NSC etc), 80D (mediclaim), 80G (donations) etc, for 2019-20.
The government has allowed PPF subscribers to make deposits till 31st July in their accounts for FY 2019-20 subject to the condition of maximum deposit ceiling of ₹1.5 lakh.
The government has also announced some relaxation in the eligibility norms for opening of Sukanya Samriddhi accounts due to the coronavirus lockdown.