A PPF account matures after completing 15 financial years from the end of the financial year in which it was opened. According to reports from Mint, account holders must submit Form 4 (or Form H at some institutions) to their bank or post office within one year of maturity to extend the tenure and continue making contributions. The form can be downloaded from bank websites like State Bank of India, HDFC, or Bank of Baroda, or obtained by visiting branches or post offices. If Form 4 is not submitted within the deadline, the account continues in blocks of five years by default, but fresh contributions are not allowed. As confirmed by financial experts, banks are well within their scope to mandate account closure in the absence of proper extension notification.
As reported by Mint, after the 15-year period ends, investors can choose from three main paths: complete withdrawal, extension without deposits, or extension with deposits. When the account continues without deposits, the existing balance continues to earn interest and withdrawals are limited to one per financial year. Since fresh contributions are not permitted, investors also lose the ability to claim tax deductions on new deposits. The account currently offers an interest rate of 7.1% per annum, which is revised quarterly and compounded annually. According to expert guidance, account holders can extend the PPF account without contribution for a block of 5 years after maturity, but must inform the bank through proper submission of Form 4 to avoid closure mandates.
According to Mint, PPF falls under the EEE (Exempt-Exempt-Exempt) category, making it eligible for tax deductions under Section 80C of the Income Tax Act, up to ₹1.5 lakh in a financial year. The interest earned on investments is completely tax-free, and maturity proceeds are also entirely exempt from tax. Each depositor can invest a maximum of ₹1.5 lakh annually, with a minimum contribution of ₹500 required each year, which can be made on a monthly or annual basis.
As reported by Mint, the decision to close or extend a PPF account should depend on individual financial needs. If immediate capital requirements exist, complete withdrawal may be appropriate. However, extending the account provides long-term returns, as the account continues to earn interest indefinitely with annual withdrawal flexibility. The government-backed scheme offers one of the most favorable tax treatments among investment options in India, making it attractive for long-term savers seeking to maximize post-tax returns. According to expert advice, extending without contributions allows the account to remain active while preserving existing funds for future use, though banks may require proper notification through Form 4 submission to avoid closure mandates.
