What best option - to close current PPF account & open new-one or extend it for another five year?

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16-04-2011
Absar

What best option - to close current PPF account & open new-one or extend it for another five year?

Few PPF queries -
1- I had opened my PPF account with General Post Office in April’1996. Can I withdraw maturity value right now?
2- What is the best option i.e. To close this account and Open new-one or extend it for another five years?
3- If I open a new account - is there any change in New Direct Tax Code Draft regarding rebates and tax free maturity value
4- If I extend it for another 5 years, am I eligible to get all tax concessions u/s 80C for these all extended 5 yrs and tax free interest and tax free maturity value after 5years?
5- How much money I can withdraw every year?
6- Is this annual withdrawal and maturity value after 5 yrs is Tax-Free?
16-04-2011
tigershark

Quote:

Originally Posted by Absar

Few PPF queries -
1- I had opened my PPF account with General Post Office in April’1996. Can I withdraw maturity value right now?

Yes you can. It depends on your financial requirements.

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2- What is the best option i.e. To close this account and Open new-one or extend it for another five years?

I would go for extension for another 5 years. Reason - If you close this account and open another one - you will have to wait for another 15 years for the maturity.

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3- If I open a new account - is there any change in New Direct Tax Code Draft regarding rebates and tax free maturity value

No idea.

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4- If I extend it for another 5 years, am I eligible to get all tax concessions u/s 80C for these all extended 5 yrs and tax free interest and tax free maturity value after 5years?

Yes, It’s tax free.

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6- Is this annual withdrawal and maturity value after 5 yrs is Tax-Free?

Yes, It’s tax free.
16-04-2011
tigershark

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5- How much money I can withdraw every year?

A subscriber can make one withdrawal during any one year. The first withdrawal can be made at any time after the expiry of 5 full financial years from the end of the year in which the initial subscription was made (i.e. from the 7th year onwards). The amount of withdrawal will be limited to 50% of the balance at credit at the end of the 4th year immediately preceding the year in which the amount is withdrawn or at the end of the preceding year whichever is lower.

Read here - http://www.policywala.com/forum/show...wals-from-PPF?