My PPF account matured in 2007. As per the rules I could have given a request for renewal for upto a year. Due to oversight this has been missed.
The bank now lets me know that the account cannot be continued.
I would like to let the funds remain in the existing account and allow it to earn tax free interest. I cannot make any further contributions in that account.
Can I open a new PPF account for fresh contributions? As per the rules, an individual can have only one PPF account. Can my current PPF account be excluded from that since technically it has matured? I understand that withdrawal is an option and not mandatory.
As per Sec 9(3) of the PPF Scheme, at its maturity, the account can be continued for a block of 5 years. This facility is available for any number of blocks on expiry of each of the extended periods. The continuation can be with or without contribution. Once an account is continued without contributions for one year, the subscriber cannot change over to with-contributions extension. [Notification F.3(6)-PD/86 dt 20.8.86].
A subscriber, continuing his account with fresh subscriptions, can withdraw up to 60% of the balance to his credit at the commencement of each extended period in one or more installments, but only one per year.
On the other hand, in the case of account extended without contribution, withdrawals can be effected in installments, not exceeding one in a year. The balance will continue to earn interest till it is completely withdrawn.
No new account can be opened if the old one is in extended mode either with or without contributions [MOF (DEA) letter F.7/2/97-NS II dt 9.2.98].
Form-H is to be used to declare the intention of continuing the account with subscription for each extended period. It should be filed before the first contribution is made for the first year. In its absence, the account will be treated as without-subscription extension. Fresh contributions made to such accounts will enjoy neither the deduction u/s 80C nor the interest. [MoF (DEA) 7/21/88-NS-II dt 10.8.90]
When my grandfather expired, his house was sold and the sale value and his investments in shares were divided amongst his heirs. I put my share in hotchpotch of my HUF and started submitting separate tax returns for the same. At that time, my family consisted of myself, my wife, son and daughter.
Am I correct in presuming