Ppf query
Roshini Arya
(Querist) 16 March 2016
This query is : Resolved
Hi
I opened a PPF account in 2000 which as per law matured in 2015 after 15 years.
My query is regarding PPF and is as follows:
Now in FY 2015-16 the account is matured and there is an option to withdraw the entire or part of the amount or pay a minimum Rs 500 to lock it for another 5 years.
However I made no contribution in 2015-16 as I was planning to buy a house and needed the entire sum.But due to certain reasons I may not need to withdraw the money as of now.As it may materilize in 2016-17 I plan not to make any contribution in 2016-17 to my PPF account so as to keep the funds handy as if I make a contribution 40% would be again locked for 5 years.
Hence as per PPF rule if I do not make a contribution 1 year after maturity the same is considered to be a PPF account without contribution.
Now if I decide to continue my PPF account by paying an X amount in 2017-18 will the PPF accept the same as with contribution considering that I made no contribution post maturity for 2 years.
Also will such delayed contribution be applicable under sec 80C
If so will there be a penalty and to what extent.
Please clarify.
dr g balakrishnan
(Expert) 22 March 2016
Your account can be activated by reasonable explanations why you could not pay your contribution?
you could say you had some other urgent commitments that restricted you from contributing ?
you better make an appeal to cmd of the bank concerned if manager cannot solve the issue.
