What is Form H for a PPF account? Know Everything About it Here!

What is Form H for a PPF account

Is your PPF account about to get matured?

Are you planning to extend the tenure of your PPF account?

Would you like to extend your PPF account tenure? Do you know the importance of Form H?

Are you aware that Form H is important to extend the tenure of your PPF account?

Continue reading the blog to know all the answers about PPF account tenure, the importance of Form H, how to withdraw an amount from the PPF account and more.

What is a PPF or Public Provident Fund?

PPF or Public Provident Fund allows an individual to save a part of his/her income annually to build a retirement corpus. Moreover, it also offers the benefit to earn competitive interest on the deposited amount and avail tax-saving benefits too. The PPF was introduced to encourage the habit of savings among people, especially those who don’t come under the Employee Provident Fund Organisation (EPFO). Investing in a PPF account earns an individual interest on the capital amount and allows him/her to claim tax deductions of up to Rs. 1.5 lakh under section 80C of the Income Tax Act.

List of Forms Associated with PPF Scheme

Following are the forms that are required to be used when opening a PPF account or to avail its related services-

Form ATo open a PPF account
Form BTo make a deposit into the account or to make repayment of the loan
Form CTo obtain the partial withdrawal
Form DTo request a loan
Form EFor making a nominee
Form FFor making changes to the account details
Form GTo claim funds in the account either by a legal heir or nominee
Form HFor extending the tenure of the account

What is Form H?

Form H is basically used to extend the tenure of the PPF account.

What is the Importance of Form H?

The following factors showcase the importance of Form H for PPF investors-

  • Form H is used to extend the tenure of the PPF account in the block on 5 years
  • Fresh contributions can be further added to the PPF account
  • Interest can be earned on the fresh contributions
  • One can avail tax benefits on the new contributions too
  • Form H offers the flexibility to not add new or fresh contributions

What if You Choose to Extend the PPF Account Tenure?

The PPF account holder should be aware of a few things if he/she would like to extend the tenure of the PPF account-

  • It is advised to understand whether you want to extend the tenure of the PPF account or not, that too, with or without contribution. You can keep the tenure of the PPF account extended even without adding further contributions to it and in return, the amount deposited in the account will continue to earn interest
  • PPF account holder needs to fill the form H in case of extending the PPF tenure within a year from the date of maturity

What Happens When You Skip Filing Form H?

The PPF lock-in period is 15 years and after maturity, one can redeem the complete amount from his/her account. However, in case of not withdrawing money from the account after maturity, it is automatically assumed that you would want to extend the tenure, hence, without even filling the form H, the PPF account tenure gets extended!

However, it is to be noted that without filling the form H, you will not be able to make deposits to the PPF account. Also, failing to fill form H within 1 year of PPF maturity, any fresh deposit or interest earned will be treated as irregular and will make you ineligible for tax benefits.

How to Find Form H?

Download Form H from your bank’s or post office’s website. Upon downloading the form, submit it to the bank or post office to extend the PPF account tenure.

How to Withdraw Money from a PPF Account?

The partial withdrawal of money from a PPF account takes place only after the completion of 6 financial years from the date of opening the account. However, the complete withdrawal of money from the PPF account can only be done after the completion of 15 years. In case of partial or complete withdrawal of money, the following are the steps to be followed carefully-

  • Fill the Form C
  • Enter all the required details in the form like PPF account number, amount to be withdrawn, the total number of financial years completed since the opening of the PPF account
  • Submit the form along with the PPF passbook
  • The bank will further check all the details written on the form along with the eligibility of the account holder for the amount withdrawal
  • Upon completion of the above-mentioned process, the amount will be credited to the account holder savings account

What are PPF Withdrawal Rules on Extension?

In case the individual wishes to extend the tenure of the PPF account, he/she can do the same but in a block of 5 years at a time. Also, if an individual does not withdraw the money after maturity, the tenure will extend automatically. The account then will fetch additional interest according to the applicable rate of interest.

  1. Withdrawal after extension

If the PPF account holder wishes to extend the tenure of the PPF account in the block of 5 years, he/she can withdraw the amount but before the extension gets started. An individual is allowed to withdraw only one PPF withdrawal per year after the extension.

  1. PPF extension with an additional contribution

PPF account holders are given the choice to extend the tenure of their PPF account by continuing to add contributions to it. This will make them earn interest on the deposited amount too. This extension can be availed only if the individual has submitted Form H to extend the tenure of the PPF account within one year of the original date of the account maturity.

  1. Withdrawal after PPF extension with a contribution

After the PPF account extension with contribution, the account holder is given the opportunity to withdraw 60% of the balance at the time of extension over the block of 5 years. Note that only one withdrawal per year is allowed.

Can I close my PPF account after 2 years?
No, the PPF account can only be closed after 5 years and that too under specific circumstances.
Can I withdraw my PPF amount?
Yes, you can withdraw 50% of your PPF balance only after the completion of 6 years.
Which form do I need to fill to withdraw a partial amount from my PPF account?
Form C should be filled for partial withdrawal of PPF balance.
Is it possible to open a PPF account with any bank?
Yes, you can open a PPF account with the banks that have partnered with the scheme.
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