My PPF account at State Bank of India has matured on March 31, 2012. But it was extended to 2017 without my consent. Shouldn’t the bank inform when the account holder will be able to withdraw the full amount and interest?

K. P. Ghosal, Calcutta

The bank had automatically extended your PPF account for the next five years as you had not informed it to do otherwise. If you do not want to continue the account and would like to withdraw the full amount with interest, you can write a letter to the bank branch pointing out your intention to do the same. However, you will have to forego the interest benefit for the extended period.

Saving up

I have a PPF account. Can I open two more PPF accounts independently for my wife and son, respectively, in their names? Since none of them have income sources, I will be providing the money for their investment.

R. Jain, Calcutta

You can certainly open two more PPF accounts for your wife and son, respectively, in their names. However, you must remember that the maximum ceiling of your investment will be Rs 1 lakh aggregate of all the three accounts taken together in a year. You must also remember that the maximum benefit under Section 80C is Rs 1 lakh.

Relief on mediclaim

I have a Janata Mediclaim Policy with The New India Assurance Co Ltd for four members of my family (self, wife, son, daughter) having a sum insured Rs 50,000 for each. I have paid a premium of Rs 5,289, including a service tax of Rs 494, during this fiscal. What will be the amount of exemption under Section 80D?

P. K. Ghosh, Calcutta

Under Section 80D of the Income Tax Act, the whole amount paid to effect or to keep in force an insurance on health of the assessee or his family is exempt from tax up to a limit of Rs 15,000 (Rs 20,000 for senior citizen). Your annual insurance premium of Rs 5289 is within the exempted limit.

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