PPF Withdrawal Rules & PPF Partial Withdrawal New Rules (2024)

FAQs

PPF Withdrawal Rules & PPF Partial Withdrawal New Rules? ›

There is no tax on partial/premature withdrawals from the PPF account. Only one partial withdrawal is allowed per financial year.

There is no tax on partial/premature withdrawals from the PPF account. Only one partial withdrawal is allowed per financial year.

Thus, the investors have to visit the bank branch with whom they have opened a PPF account. PPF withdrawal online is limited to checking the eligible amount through the net banking facility. However, the investors can download and fill in Form C and submit it at the concerned bank branch or post office.

PPF has lock-in of 15 years

So, if you open a PPF account in April 2023, it will mature in March 2038. After your PPF account matures, you can withdraw the entire corpus or leave the amount by extending the term for as long as you feel feasible, but that can be extended in blocks of 5 years.

Completion of seven years: According to PPF partial withdrawal rules, you can withdraw up to 50 percent of the amount in your PPF Account after seven years, starting from the end of the year you made your first contribution. You can make only one partial withdrawal each year.

A PF account holder can withdraw up to 75% of the total accumulated amount if he/she has been unemployed for more than 1 month after relinquishing employment. This provision also allows the account holder to withdraw the remaining 25% if the unemployment period stretches over 2 months.

Partial Withdrawal of PPF

Only one partial withdrawal is allowed in a financial year. Individuals must submit the passbook along with the application form. Only after the bank or post office verifies all details will partial withdrawal be allowed. The amount that is withdrawn is tax-exempt.

"The banks have not fully automated the PPF withdrawal process yet. So, the investors will have to visit the concerned bank branch with whom they have opened a PPF account. Online PPF withdrawal is limited to checking the eligible withdrawal amount online through the net banking facility.

For a premature closing request, PPF account holders will have to submit a duly filled Form C at the bank branch or post office where he/ she has the PPF account. The PPF will be terminated thereafter, the corpus will be credited to the bank account.

PPF has a maturity period of 15 years. However, under certain circ*mstances, one may also choose to withdraw funds from the PPF account before the account matures.

Can PPF be withdrawn prematurely? ›

In certain circ*mstances, you may be able to close your PPF account before the 15-year term expires. For example, seeking treatment for a life-threatening sickness that the account holder or dependents are suffering from, or paying for higher education.

Under the new regulations, PF account holders can withdraw money equivalent to three months of their basic salary plus dearness allowance or 75% of the net balance in their EPF account, whichever is lower.