I have a query.
I have one PPF account. Its tenure of 15 yr are over and I have extended to another 5 years. To my understanding I can extend three times like that. Am I right? During the extended period is there any limit on withdrawels? Can I withdraw all the balance and still continue the contribution for tax benefit?
Sundar
During extended period same rules apply.
You can not make more than one deposit on a month or 12 deposits in a year. Minimum one deposit in a year is needed to keep it alive.Maximum 70000 can be deposited ( for tax benefit purposes). Minimum Rs. 100 in a year to keep it alive.
It is still EEE scheme meaning, Principal paid during a year, is to be counted towards tax exemption subject to overall limit of 100000.
Withdrawal is not counted towards income and hence exempt.
interest is exempt.
If you withdraw and again deposit, you will get tax exemption.
Withdrawal is subject to restriction of 25% of outstanding at the fourth year before the date of withdrawal.
You can take loan and repay (but it may not be so useful as after fourth year withdrawal permitted)
The tax benefit will depend on the income bracket you are in after the tax deductible income.
pankaj
