PPF withdrawal News

The Public Provident Fund (PPF) offers secure, long-term savings with strict withdrawal rules. Full withdrawal is allowed only after the 15-year maturity, while partial withdrawals begin from the 7th year and are limited to one per financial year, capped at 50 percent of the eligible balance. After maturity, the account can be extended with or without new contributions for 5-year blocks. Premature closure is allowed only after five years under specific conditions like medical needs or higher education. Withdrawals require Form C and remain completely tax-free, preserving the PPF’s EEE tax-benefit structure.  

Public Provident Fund (PPF) is a 15-year investment scheme under which an investor enjoys tax exemption at the time of deposit, accrual of interest and withdrawal.

Here are the key facts you should know about the premature PPF withdrawal.  

The Finance Ministry Monday said subscribers of the Public Provident Fund (PPF) can prematurely close the deposit scheme after completing five years for reasons such as higher education or expenditure towards medical treatment.

The Finance Ministry is considering a proposal to raise the minimum lock-in period for withdrawal from PPF account from six to eight years to attract longer term funds for infrastructure development.