When Can I Withdraw My PPF – Know How ?

The question of PPF withdrawal is quite tricky! The Public Provident Fund has very stringent rules and regulations specially to do with withdrawal of money from the account. Typically, it allows to withdraw the full deposit after exhausting 15 years of lock in period. However, in emergency circumstances, one can withdraw partial amount from the 7th year onwards till 15th year.

Like its already mentioned that any withdrawal can be done only as per the PPF scheme rules. What is recommended by tax gurus is to avoid dealing with this amount until emergency arises.  Partial withdrawals are somewhat allowed to deal with on face problems, subject to some rules.

let’s have a Quick look at the PPF Account rules

A typical Public Provident Fund matures after the lock in of 15 years exhausts. But during contingencies, the rules can be followed for partial withdrawal as underlined below:

  1. Money from the PPF account can be withdrawn after completing 7 years from the day of creation of the PPF account. The stipulated amount can be withdrawn at the beginning of the financial year.
  2. The sum of money to be withdrawn is limited to a particular value.
  3. About 50% of the closing balance towards the 4th year end prior to the year when the money has been withdrawn or 50% of the closing balance of the last year whichever is lower.
  4. If at all a loan has been sanctioned using the PPF account, then this amount will be deducted from the principle amount of the account.
  5. One withdrawal every financial year is allowed.

Check your PPF Withdrawal Status Properly

Checking your PPF account balance is already known, next is checking your withdrawal status by logging into your bank account through internet banking. Keeping a tab on your PPF claim through online channels only with the banks that accept online deposits. With the post offices, it’s a bit difficult because one needs to visit the branch in person and lodge a request to verify your PPF withdrawal status.

Premature Withdrawal of PPF

As discussed already, PPF is the best way to gain tax benefits and several long term PPF benefits. The plan permits withdrawal rights after the completion of the 5th financial year. This withdrawal mechanism can only be used at the time of financial emergencies (medical needs, higher studies etc.), not otherwise. Only about 50% can be withdrawn of the accumulated amount towards the end of 5th year.

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