Are you aware that Form H must be completed in order to extend the life of your PPF account?
Continue reading the blog to find out everything you need to know about PPF account tenure, the significance of Form H, how to withdraw money from a PPF account, and more.
What is Form H?
Form H is primarily used to extend the tenure of the PPF account.
What is the Importance of Form H?
The following factors highlight the significance of Form H for PPF investors:
- Form H is used to extend the tenure of a PPF account in a block of five years
- New contributions can be made to the PPF account
- Interest can be earned on new contributions
- One can avail tax benefits on the new contributions too
- Form H allows one to avoid adding new contributions while still receiving tax benefits
How to Find Form H?
Form H is available on the website of your bank or post office. To extend the PPF account tenure, download the submit it to your bank or post office.
What Happens If You Don’t Submit Form H?
The PPF lock-in period is 15 years, and after maturity, the investor can withdraw the entire amount from his or her account. However, if you do not withdraw money from the account after maturity, it is automatically assumed that you want to extend the tenure, so the PPF account tenure is automatically extended without even filling out form H!
It should be noted, however, that you will be unable to deposit funds into your PPF account unless you complete Form H. In addition, if you do not complete Form H within one year of PPF maturity, any new deposits or interest earned will be considered irregular and you will be ineligible for tax benefits