PPF Extension Rules: The Post Office Public Provident Fund (PPF) allows you to extend your account in 5-year blocks even after maturity. This extension helps you continue earning 7.1% tax-free interest while offering a stable income source for the future. It is one of the best retirement planning tools for long-term wealth growth.
Key Benefits of Extending Your PPF Account
Earn 7.1% Tax-Free Interest – Even after maturity, your PPF account continues earning interest.
Unlimited Extensions – You can extend your account every 5 years with or without further investments.
Flexible Withdrawals – Choose to withdraw only the interest or part of the principal once a year.
Tax-Free Monthly Income – By withdrawing annual interest, you can earn up to Rs 39,395 per month tax-free.
How Does PPF Extension Work?
1. Extension Without Additional Investment
Your existing balance continues earning 7.1% interest.
You can withdraw any amount once per year.
The remaining balance continues compounding.
2. Extension with Additional Investment
You can continue depositing up to Rs 1.5 lakh per year.
The account continues earning interest on total deposits.
You can withdraw, but only up to 60% of the total balance.
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Example: PPF Growth & Monthly Income
PPF Maturity After 15 Years
- Annual Deposit: Rs 1.5 lakh
- Interest Rate: 7.1% per annum
- Total Deposited: Rs 22.5 lakh
- Total Fund After 15 Years: Rs 40,68,209
Monthly Tax-Free Income After 15 Years
- If extended for 5 years without investment:
- Annual Interest on Rs 40.68 lakh = Rs 2,88,843
- You can withdraw Rs 24,000 per month tax-free
PPF Maturity After 20 Years
- Total Deposited: Rs 30 lakh
- Total Fund After 20 Years: Rs 66,58,288
Monthly Tax-Free Income After 20 Years
- If extended for 5 years without investment:
- Annual Interest on Rs 66.58 lakh = Rs 4,72,738
- You can withdraw Rs 39,395 per month tax-free
How to Open a PPF Account?
A PPF account can be opened at Post Office Small Savings or authorized banks.
Documents Required:
KYC Documents – Aadhaar card, voter ID, driving license, etc.
PAN Card
Address Proof
Nominee Declaration Form
Passport-Size Photo
Frequently Asked Questions (FAQs)
Q1: Can I extend my PPF account multiple times?
Yes, you can extend it indefinitely in 5-year blocks.
Q2: Is PPF income taxable after extension?
No, both the interest and withdrawals remain tax-free.
Q3: Can I withdraw my entire PPF balance after 15 years?
Yes, but if extended without new investment, you can withdraw only once per year.
Q4: Can I continue investing after extension?
Yes, but only Rs 1.5 lakh per year, and withdrawal rules apply.
Q5: Where can I open a PPF account?
At any Post Office or designated bank, through online or offline mode.
Final Thoughts
PPF is a powerful long-term investment that ensures wealth growth and tax-free income. Extending your PPF account after 15 years can help you secure a stable monthly income while maximizing retirement benefits. With compounding benefits, flexible extensions, and tax exemptions, it remains one of the best financial tools for future planning.
