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Key things to know
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PPF withdrawal rules explained
If you want to withdraw money from the account or close it prematurely before the 15 years, the following are the rules for partial withdrawals, according to the HDFC Bank website.
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PPF Partial withdrawal rule
You can withdraw up to 50% of the amount in your PPF Account after seven years, beginning with the end of the year you made your initial contribution. You can only make one partial withdrawal each year. To withdraw funds, you must present the PPF passbook and an application to the bank/post office. The sum withdrawn is not subject to income tax.
This is also unchanged in the PPF withdrawal rules for 2021.
The sum would be the lesser of these two, according to PPF Account withdrawal rules: 50% of the account balance at the end of the fiscal year, or 50% of the amount at the end of the fourth fiscal year preceding the year of application.
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Premature closure
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Loan
The maximum loan amount is 25% of the sum at the end of the two years preceding the year in which you request the loan. In the event of the account holder's death, the nominee/legal heirs must pay the interest on any unpaid loans. This could be adjusted when the account is closed.
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Procedure for withdrawal
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