PPF Withdrawal Rule : If the need arises suddenly, how to withdraw money from PPF account? Know this rule

PPF Scheme: In this government scheme, you can invest a minimum of Rs 500 annually, and the maximum limit is up to Rs 1.5 lakh.

PPF Withdrawal Rule: Public Provident Fund is one of the popular small saving schemes of the country. In this, the investment amount of the customers remains completely safe. In this government scheme, you can invest a minimum of Rs 500 annually, and the maximum limit is up to Rs 1.5 lakh. At present the government is giving interest at the rate of 7.1 percent per annum on PPF. You can get good returns by investing in it. You can open PPF account in any bank and post office of the country.

Let us tell you that by investing in PPF, you get compound interest, which is calculated on an annual basis. You can open PPF account in almost all government and private banks of the country including post office. For this it is necessary to be an Indian citizen. PPF account can be opened in the name of minor children. But for this it is very important to have a parent. The earnings from the child’s account are added to the parent’s income.

Can withdraw before time

• PPF has a locking period of 15 years. Therefore, if you want to invest for the long term, then PPF is a great option.
• If you need money in between, then partial withdrawal facility is available in this scheme.
• If you want to withdraw money before 15 years, then it is allowed only after seven years.
• While investing in this scheme, also keep in mind that the year of starting investment is not counted in the calculation of 15 years maturity of PPF account.
• You can make partial withdrawal from PPF account after seven years.
• You can withdraw 50 percent amount from the account. But you can withdraw money only once in a year and the withdrawn income will come under the ambit of tax.
• 50 percent of the existing balance in the account at the end of the financial year preceding the current year or 50 percent of the existing balance in the account at the end of the fourth financial year preceding the current year can be withdrawn.

Withdrawal process

• To withdraw money from PPF account, you will have to submit Form C. This will be available in bank or post office.
• In the form, you will have to mention your account number and the amount you want to withdraw.
• Apart from this, a revenue stamp will also be required.
• Then it will have to be submitted along with the passbook.
• After completion of the process the amount will be transferred to your account.

You get these benefits

• After operating the PPF account for three years, you can take a loan on it.
• Loan facility is available from 3rd to 6th year of account opening.
• The second loan can be applied only after the first loan is closed.
• You can take loan only for 25 percent of the amount deposited in PF account.
• By depositing money in PPF, you can avail the benefit of tax exemption along with better returns.
• You can avail tax exemption under Section 80C of Income Tax, the maximum limit of which is Rs 1.5 lakh.