Extension of PPF Account after Maturity

The maturity of a PPF account comes after 15 years. It is not necessary to withdraw the balance from your PPF account as soon as it matures. If you do not want to withdraw from your PPF account after its maturity, you can extend it further.

Now, a question may arise in your mind as to how to extend PPF account after maturity or can I extend PPF account after maturity. So we explain below about how to extend PPF after maturity and what happens to PPF account after maturity.

PPF account can be extended in the block of 5 years for any number of times. You will continue to receive interest on your balance amount kept in your PPF account.

If you have not reached your retirement age at the time of maturity of your PPF account i.e. at the end of the 15 year lock-in period of your PPF account, you should extend it instead of withdrawing fund from it. It is suggested to extend the PPF account until the person reaches 60 years of age.

There are 2 modes of extension of your PPF account:

(1) Extension with Fresh Deposits

In this case, you need to inform to the branch about extension of PPF account with fresh deposits. It should be informed before the expiry of first year of extension. You will also get tax benefit under section 80C of the income tax act towards fresh deposits made by you maximum Rs 1.5 lakhs per year.

(2) Extension without Fresh Deposits

If your PPF account is extended but you have not made any deposit during first year of extension then it will be treated as extension without fresh deposits. In such case, you cannot make any deposit n your PPF account during the extended period i.e. 5 years. You will keep receiving interest on the balance amount held with your PPF account.

For How Long can the PPF Account be Extended?

The maturity of any PPF account is of 15 years. After the maturity, it can be extended for as long as the account holder wishes to continue it. Extensions can be done for in a block of 5 years at a time.

For example, if your PPF account got matured on March 31st 2018, it can be extended till March 31st 2023. The next extension will be made on Mar 31 2023 which will be until March 31st 2028 and so on, for indefinite period of time.