Should I Show My Closed PPF Account in My ITR?

Ans: Person is required to show details of all income correctly in Income Tax Return. Though PPF interest income is exempt, it is advisable to file revised return for AY 2023-24 and show interest income correctly in exempt income schedule.

Ans: You have the option to continue your PPF account even after the initial 15-year lock-in period without making further contributions. The account will continue to earn interest until it reaches maturity. If you don't need the funds immediately and are comfortable with the current interest rate and tax benefits, you can keep it open. However, evaluate the returns compared to other investment options and consider your overall financial goals before making a decision.

Ans: You should keep the older account, which has been accumulating interest for a longer period of time. The reason is that once the 15-year lock-in is over, then such old PPF accounts create lot of liquidity. Hence, always choose and retain the one which you opened first.

Your 2020 PPF will not get any Interest; thus, consider closing it. As per the latest communication by the Ministry of Communications Department of Posts, accounts opened on or after 12/12/2019 are not eligible for such merger or amalgamation. You will get the invested amount without any interest.

To close your PPF account, you will need to submit a Form 10C to your bank or post office. You will also need to pay a penalty of Rs. 50.

Transfer the balance from the closed account to the active account. You can do this by submitting a Form 10D to your bank or post office. There is no penalty for transferring the balance between PPF accounts.

Ans: Yes you can close your ppf account when you return to India. Bank will return your balance funds after closure.