PPF Amount Withdrawal: Partial or in Full

PPF investors may withdraw money from their accounts when they reach maturity, which occurs 15 years after the account was opened. However, premature withdrawals or partial PPF withdrawals are available. The below-mentioned provisions are to be noted in relation to the PPF withdrawal rules:

• Complete PFF withdrawal: After completion of the PPF term of 15 years
• Partial PPF withdrawal: After 6 years from opening the account, in case of emergency/special circumstances.
• Premature PPF withdrawal: After completion of 4 years from the date of opening the account (maximum 50% of the total accrued amount).

After 6 years from the account's opening, one gets the option to make partial PPF withdrawal limits under certain extraordinary conditions. The maximum withdrawal is limited to 50% of the fund's total corpus at the end of the fourth year following the account's opening date.

The PPF withdrawal limits and rules are shown in the following table, including their time, grounds, and amount. It also highlights different PPF withdrawal eligibility criteria.

Individuals can extend the PPF account tenure for as long as they want, particularly blocks of 5 years. The PPF tenure automatically extends if no money is withdrawn from the account or it is not closed.

The amount then keeps increasing as the account earns interest at the current rate.

If a 5-year block extends an account, people may only withdraw PPF funds up to the amount in the account when the extension was started.

Additionally, with the extension, they are only permitted one annual PPF withdrawal online and offline.

Let's say, for illustration, that Mr. Dutta created a PPF account in 1995. Up until 2010, it had accumulated Rs 25 lakhs. Mr. Dutta decided to prolong it for an additional five years through 2015. Therefore, in 2020, he can only withdraw up to Rs. 25 lakhs. Additionally, he is only permitted for PPF withdrawal online and offline once a year.

People can extend the PPF account's term while simultaneously making an additional contribution to the account. By doing so, they can increase the PPF's corpus and accrue interest on it in addition to the interest already received on the original sum.

Nevertheless, this extension is only available if Form H for PPF account extension is submitted within a year of the account's initial maturity date.

If Form H is missing, the person can no longer prolong their PPF. Therefore, additional donations won't generate interest or qualify for tax advantages under Section 80C of the Income Tax Act 1961.

After a 15-year lock-in period, you can withdraw your whole PPF balance. You can close your PPF account after withdrawing the money and any interest that has accrued on it. That said, after 5 years since the account was opened, you may withdraw a limited amount from it following PPF partial withdrawal guidelines. It's important to keep in mind the following things while making partial withdrawals from a PPF account:

• After the 6th financial year, about half of the PPF account's balance may be withdrawn.
• Only one partial withdrawal is permitted within a given fiscal year.
• To withdraw a portion of their PPF, people must submit an application form and their passbook.
• Before approving a request for partial withdrawal, the bank verifies all the information.
• No tax is levied on the amount (partial withdrawal).

To partially or fully withdraw money from your PPF account, you must file Form C. The post office or bank where you started your PPF account will have Form C available. Additionally, Form C may be downloaded from the internet, printed, filled out, and delivered to the appropriate bank or post office.

For both partial and complete PPF withdrawals, Form C for PPF withdrawal must be submitted to the appropriate bank or post office. The following are the sections of Form C that you must complete:

• You must include your PPF account number and the reason for withdrawal in the declaration section. The number of years you have managed the PPF account must also be mentioned.
• Section for office use: This section requires the account holder's signature and date. The account holder must specify the maximum withdrawal amount, the amount in the account that is currently available, and the overall account balance.
• The PPF account's opening date and the most recent withdrawal request deadline must be provided.
• The account holder must enter information in this section about the bank account that will get credit for the withdrawn funds. Account holders may also upload information about checks or demand drafts in this section.
• The account holder's information must be submitted if they are a minor.

Non-resident Indians (NRIs) are not permitted to register a PPF account. Nevertheless, if the account was started before they were NRIs, it must be maintained until maturity. The available balance in the account must be withdrawn after maturation, and the account must be closed. NRIs are not allowed to prolong their PPF accounts.