PPF is a long-term saving cum investment instrument which was started to encourage small savings and investments. For the longest time, PPF has been regarded as a safe and popular savings scheme that offers tax benefits.
Know more about PPF - Account Opening, Deposit rules, PPF Withdrawal | Public Provident Fund- [ Ссылка ]
So, if you have already invested in PPF and are looking to withdraw funds from your account. This video will explain everything about PPF Withdrawal rules
Options to withdraw PPF Funds:
1. Partial Withdrawal
2. Complete withdrawal
3. Premature Closure
Partial Withdrawal
1.Partial withdrawals are allowed after the completion of five years from the end of the year in which the initial investment was made. That means, if you started your PPF account in Feb 2010, you can begin making partial withdrawals from the financial year 2015-16.
2. You cannot withdraw the entire amount from your PPF account. The amount can be withdrawn up to 50% of the balance that is available after the completion of the fourth financial year.
Complete withdrawal
1. Public Provident Fund Account matures after 15 years. Individuals are provided with the option to withdraw the entire fund on maturity.
2. PPF account holders are provided with the option to extend the tenure of their PPF account, the tenure can be increased in a block of 5 years at a time.
3. If individuals do not close the PPF account or withdraw the corpus, the tenure for PPF is automatically extended. The account then fetches interest according to the applicable rate of interest.
Premature Closure
1.You can opt for the early closure of your PPF account only under certain circumstances; after 5 years of opening of the account.
-In case of treatment of life-threatening disease or ailments faced by account holders/ parents /dependent children. Relevant supporting documents and medical reports must be submitted to verify the reasons.
-If you need funds for higher education, you can opt for premature closure of your account. You will need to furnish relevant documents such as fee receipts and admission confirmation letters to substantiate the requirement.
2. If you withdraw prematurely, the interest would be 1% less. The reduced interest rate would be applicable from the beginning. For that, the recalculation would be done.
Procedure of Partial or Complete Withdrawal of PPF
1. Individuals are required to fill up Form C.
2. Some of the relevant details required are; PPF account number and the amount to withdraw, how many financial years have been completed since the opening of the PPF account.
3.Submit the PPF passbook.
4.The bank will check all the details and eligibility of the account holder for the withdrawal.
5.Individuals can get the amount credited to their savings account or get a demand draft (DD) for the same.
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