After 15 years: extend in 5-year blocks with or without contributions. Form H. Tax-free 7.1% + flexible withdrawals. Underrated retirement income tool. Beats taxable FD.
PPF MATURITY (15 years) OPTIONS: (1) WITHDRAW FULL corpus (tax-free). (2) EXTEND 5 years WITH contributions. (3) EXTEND 5 years WITHOUT contributions. (4) Leave as-is (auto-extends without contribution, earns interest). KEY: extension in 5-YEAR BLOCKS (indefinitely). EXAMPLE: ₹40L PPF at 15 years. (a) Withdraw all tax-free. (b) Extend with ₹1.5L/year — keeps growing. (c) Extend without — earns 7.1% on ₹40L. STRATEGIC: powerful tax-free compounding tool beyond 15 years.
PPF EXTENSION WITH CONTRIBUTIONS: (1) SUBMIT FORM H within 1 year of maturity. (2) Continue ₹500-₹1.5L annual contributions. (3) 80C deduction continues (old regime). (4) 7.1% interest continues. (5) WITHDRAWAL: 1 per year, up to 60% of balance at extension start (over 5 years). EXAMPLE: ₹40L at maturity, extend with contributions. (a) Add ₹1.5L/year. (b) Earns 7.1%. (c) Can withdraw up to 60% of ₹40L over the block. STRATEGIC: continue for tax-free growth + 80C + partial liquidity.
PPF EXTENSION WITHOUT CONTRIBUTIONS: (1) DEFAULT if no Form H submitted. (2) NO new contributions. (3) Existing balance EARNS 7.1% interest. (4) WITHDRAWAL: 1 per year, ANY AMOUNT (no 60% limit). (5) Indefinite 5-year blocks. EXAMPLE: ₹40L, extend without contribution. (a) Earns ₹2.84L interest/year (7.1%). (b) Withdraw any amount once/year. (c) Tax-free. STRATEGIC: ideal for retirees — tax-free 7.1% + flexible withdrawals. Better than FD (taxable). Park retirement corpus in extended PPF.
PPF EXTENSION WITHDRAWAL: WITH CONTRIBUTIONS: (1) 1 withdrawal per year. (2) Max 60% of balance (at extension start) over the 5-year block. WITHOUT CONTRIBUTIONS: (1) 1 withdrawal per year. (2) ANY AMOUNT (no limit). (3) Can withdraw entire balance if needed. BOTH: (1) Tax-free withdrawals. (2) Remaining balance earns 7.1%. STRATEGIC: 'without contribution' mode gives maximum flexibility for retirees. Withdraw as needed, rest compounds tax-free.
PPF EXTENSION STRATEGY: (1) AT 15 YEARS: don't auto-withdraw — extend for tax-free compounding. (2) STILL EARNING (working): extend WITH contributions (Form H) + 80C. (3) RETIRED: extend WITHOUT contributions — flexible tax-free withdrawals + 7.1%. (4) TAX-FREE 7.1% beats taxable FD (post-tax ~5% for 30% slab). (5) PARK retirement corpus in extended PPF. (6) PARTIAL withdrawals as needed (tax-free). (7) INDEFINITE 5-year blocks. (8) SUBMIT FORM H within 1 year for 'with contribution' mode. (9) ESTATE: nominee inherits. STRATEGIC: extended PPF is underrated retirement income tool. Tax-free 7.1% + flexibility. CONTINUE beyond 15 years.