I had opened a PPF account on August 1, 1993. When will my account mature — on August 1, 2008 or April 1, 2009? If I stop paying my annual contributions, will the balance in the account continue to earn 8 per cent interest? Can I withdraw the full amount anytime?

Jayanta Lahiri, Calcutta

PPF is a 15-year scheme and the year here refers to a financial year and not a calendar year. Hence, the time of maturity of your PPF account will be after April 1, 2009. In a PPF scheme, a minimum deposit of Rs 500 has to be made every financial year. If you default in the minimum subscription in any financial year, you can revive the account by paying Rs 500 next year along with a fine of Rs 100 for each year of default. One cannot withdraw the full amount from a PPF account before 15 years. However, a subscriber is allowed to make one withdrawal every year from the seventh financial year. An amount not exceeding 50 per cent of the balance to his credit at the end of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year, whichever is lower, is allowed for withdrawal.

Taxing times

I am 68. A nationalised bank, where I have an FD account, is insisting on submission of Form 15H and 15G by senior citizens for 2008-09. Is there any change in the the Income Tax Act?

Baidya Nath Biswas, Calcutta

Form 15G is for all taxpayers, while Form 15H is a special form for senior citizens. Your bank cannot demand submission of both the forms by senior citizens.

For seniors

Is there any time limit for submitting Form 15H to the post office for the Senior Citizens Savings Scheme? Are senior citizens required to submit this form any more because tax deduction has been allowed to SCSS from 2008-09 ?

Ajit Kumar Das, Howrah

You can submit Form 15H anytime during a financial year. The post office or the bank will stop deducting tax on your interest income only after it gets your declaration in Form 15H. You should deposit the form with the post office or the bank by the first week of April every year.

If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to: btgraph@abpmail.com, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001.