• PPF account

I have a ppf ac. 5 yr extension will get over in mar 2016. will i be able to withdraw whole amount in april 2016, if i opt out and decide not to extend the ac for further period of 5 yrs?

Also will i be able to earn income even if i keep the money in ppf and not contribute any amount for many years? 
Asked 4 years ago in Income Tax from Pune, Maharashtra

The amount withdrawn from PPF account after its maturity is not taxable.

The interest earned on PPF is exempt from tax whether or not you contribute during the previous year. However, if you do not contribute minimum amount, the PPF account may get lapsed.

B Vijaya Kumar
CA, Hyderabad
891 Answers
67 Consultations

5.0 on 5.0

As per the Income Tax Act for employees amount withdrawn from PPF account after 5 years is not taxable.

PPF account holders have an option of extending their accounts after the 15 year tenure with or without further subscription, for any period in a block of 5 years. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed. In case the account is extended without contribution, any amount can be withdrawn without restrictions. However, only one withdrawal is allowed per year. If you continue the account after 15 years, with continued deposit, withdrawal up to 60 per cent of the balance at the beginning of each extended period (block of five years) is permitted.

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
110 Consultations

5.0 on 5.0


Assuming it is a PPF account as stated by you and not an EPF Account. As your extension period will get over in March 2016 you can withdraw the whole amount in April 2016. But in case you dont, then you wont be permitted to withdraw any further amount till March 2017 as only one withdrawal is permitted per year.

But your account will be earning interest at the rate specified by the PF Act for the very period (which will be exempt from tax).

It is also advised to deposit the minimum account in your PPF Account or else your PPF Account may get blocked.


CA Rohit R Sharma




Rohit R Sharma
CA, Mumbai
2104 Answers
92 Consultations

5.0 on 5.0

PPF Account may be extended in blocks of 5 years indefinitely. The extension may be opted with or without contributions. If no option is intimated to the P.O./Bank, it is automatically extended as without contribution for a block of 5years.

In case of opting out, you may withdraw the whole amount in April,2016.

In case of extension without contribution, you will continue to earn tax free interest.

Anil Bedi
CA, New Delhi
10 Answers

Not rated

You can withdraw the entire amount in 2016 if you opt not to extend the account. You need to deposit Rs. 500 every year to continue to account. Each extension of PPF account is for 5 years. You can also make a partial withdrawal from the PPF account during its continuance.


Ankit Jain


Ankit Jain
CA, New Delhi
32 Answers
3 Consultations

4.9 on 5.0


You will be able to withdraw your PF in April,2016.

As per latest changes interest on PF is not paid if no contributions are made and account

is declared dormant after thirty six months from the date it becomes due.

Vinayak Gorhe
CA, Thane
3 Answers
1 Consultation

Not rated

We have to initially open the Open the PPF account for 15 years and after the initial period of 15 years is over, one can keep on extending the deposit for a period of 5 years at a time. In fact, this is where the magic of PPF begins. One need not start a fresh PPF account and continue it for all of 15 years — just extend the old one for five years at a time, indefinitely. This way, the same PPF account offers additional liquidity to what is offered during the initial term. Overall, then, after the initial 15-year period, you can convert your PPF investment into a 5-year deposit that offers tax-free interest, tax saving under Sec. 80C and immense liquidity —- and all this for your lifetime. Now, let’s briefly examine the rules of extension. The PPF account can be continued (after the term of 15 years) either with or without further subscription. The rules for contribution to the extended account remain the same as during the 15-year period. Once the choice is made for a block of five years, it cannot be changed.The only thing that investors should be careful of is that once an account is continued without contribution for any year, the subscriber cannot change over to with-contributions extension. [Notification F.3(6)-PD/86 dt 20.8.1986]. The choice to extend the PPF account with subscription has to be made within one year from the maturity of the account. If this is not done, then by default the account is deemed to have been extended without further contribution for a period of five years.

Shiv Kumar Agarwal
CA, Delhi
297 Answers
63 Consultations

5.0 on 5.0

Yes you can opt out and withdraw all money in april 2016 and also you will not been taxed on the earnings of the PPF.

As if you keep your money and do not invest anything then it is also possible that you account may be treated as dormant and you also not get interest on that. So it is not advisable that you keep money in that account if your intention is to just keep money idle and not investing in the account

Kavit Dilip Gadhia
CA, Mumbai
35 Answers

4.6 on 5.0

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