The government has taken a reprieve for the holders of Public Provident Fund (PPF) due to the lockdown. Those whose accounts have matured and they want to extend the period can apply by 31 July 2020. Failure to do so will not earn interest on the additional investment
According to the postal department, usually applications have to be extended within one year of the maturity of the PPF account.
That is, if your account has matured on 31 March 2019, then it is necessary to apply by 31 March 2020 to extend its period. This time due to the lockdown of the Covid-19 epidemic, today the date has been extended to 31 July to facilitate the reform. No interest on new investment if you miss application If the reformer did not apply to extend the period of the account, interest will not be paid on the investment made in the account after the maturity period.
The shareholder can either extend the period of the account with a new investment or can take interest for the next 15 years without investing. It will be necessary to submit the form for the interest on the new investment. But even if this form is not submitted, the interest on the old investment lying in the account will continue to be available as before. Until the account is closed.
Application for tax exemption is also necessary. The PPF account holder will be required to submit the application form even if he has to avail tax exemption under Section 80 C of Income Tax on investments made after the maturity period. Failing that, the Income Tax Department will not discount the return of the respective assessment year on its investment. The current interest rate on EPF is 7.10 per cent. The Income Tax Department has also extended the investment period up to 31 July for tax exemption in the last financial year. That is, you can also get income tax exemption for 2019-20 on investments made till the end of this month.