Public Provident Fund is the best Tax Saving Instrument in India. To know why, read my article on PPF: Public Provident Fund
PPF matures after completion of 15 years. On Maturity of PPF Account, you can do the following things:
Subscriber can withdraw the whole amount after maturity by applying in Form C.
Click to download: Form C
Subscriber can continue the account without any fresh investment. The account will keep on earning the interest at the prevailing rate of interest.
Withdrawal is allowed once in a financial year. One need to fill form C to make partial withdrawal.
Subscriber can renew the account for a duration of 5 years. A subscriber may, on the expiry of 15 years from the end of the year in which the initial subscription was made but before the expiry of one year thereafter, may exercise an option with the Accounts Office in Form H that he would continue to subscribe for a further block period of 5 years.
Click to download: Form H
Subscriber opting to subscribe for the aforesaid block period shall be eligible to make partial withdrawals not exceeding one every year by applying to the Accounts Office in Form C, subject to the condition that the total of the withdrawals, during the 5 year block period, shall not exceed 60 per cent of the at his credit at the commencement of the said period.
A subscriber may at his option (to be exercised before the expiry of the first year of every extended block period) avail of this facility for a further block of 5 years on expiry of 20 years or on expiry of 25 years and so on, from the end of the year in which the initial subscription was made.
1. If you are not in urgent need of money, continue the ppf amount with Five years subscription. You can continue the account by putting in as little as Rs.500 per annum.
2. Some people close the PPF account at maturity & then open a new ppf account. One should continue the same account because a new account will again take 15 years to mature.