PPF Account: Know About Form H
Form H for PPF: You must be aware of Public Provident Fund (PPF). PPF is a great investment option, in which you get guaranteed returns with safety.
You can open PPF account in any post office branch as well as in banks. The maturity period of PPF is 15 years. At that time Form H comes in handy. Know further the details of this form.
What is the Use of Form H
When it comes to maturity of PPF, its account holders must be aware of Form H. PPF accounts mature in 15 years.
However, you can extend the maturity period of the PPF account for a period of five years. You can increase it as many times as you want.
There is no limit to it. Form H has to be submitted only to extend the term of the account.
What Will Happen if the Maturity Period is Extended
If the maturity date of PPF account is extended then you can continue the account with or without fresh contribution.
Even if you do not make fresh investments, you will continue to earn interest on the amount already deposited till the maturity of the account.
If the PPF account holder wants to continue the account with contribution after maturity, he/she needs to submit Form H within one year from the date of maturity of the account.
Where to Get Form H
Form H will be available on the website of your bank or post office. To extend the period of PPF account, download it and submit it to your bank or post office.
However, if you do not withdraw money from the account after maturity, it is assumed that you want to extend the term, so the PPF account itself gets extended without filing Form H.
But if you want to extend the term of the account, then it is better that you submit this form.
Disadvantages of Not Submitting Form H
However, it is to be noted that unless you fill and submit Form H, you will not be able to make fresh deposits in your PPF account.
Also, if you do not submit Form H within one year of PPF maturity, then any fresh deposits or interest earned will be treated as irregular and you will be ineligible for tax benefits.
How to Become a Millionaire
The government is currently offering an interest rate of 7.1% per annum on PPF. This is for the October-December 2022 quarter.
The time in which you can become a millionaire also depends on how much you invest every month.
If PPF rates remain the same and you invest Rs 12000 every month, you will be able to create a corpus of Rs 98.95 lakh in 25 years.
Now if interest rates increase or you invest more then this work can be done quickly. But you have to extend the term of the account and at that time form H will come in handy.
Explain that this can be a good investment option in 2023, because the interest rates of PPF can increase.
