PPF Withdrawal Rule: How to withdraw money from PPF account in case of sudden need? this is the rule

0
894
PPF Withdrawal Rule: How to withdraw money from PPF account in case of sudden need? this is the rule
PPF Withdrawal Rule: How to withdraw money from PPF account in case of sudden need? this is the rule

PPF Scheme: In this government scheme, you can invest at least Rs 500 annually, and there is a maximum limit of Rs 1.5 lakh.

PPF Withdrawal Rule: Public Provident Fund is one of the popular small saving schemes of the country . In this, the amount of investment of the customers is completely safe. You can invest at least Rs 500 annually in this government scheme, and the maximum limit is up to Rs 1.5 lakh. At present, the government is paying 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.

Explain 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. Earnings from the child’s account are clubbed with the parent’s income.

Can withdraw before time

  • PPF has a locking period of 15 years. So if you want to invest for the long term, then PPF is a great option.
  • If you need money in between, then the facility of partial withdrawal 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 in maturity of PPF account.
  • You can do partial withdrawal from PPF account after seven years.
  • You can withdraw 50 percent of the 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 But you can withdraw money only once in a year and the withdrawn income will come under the ambit of tax.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% of the balance in the account at the end of the financial year preceding the current year or 50% of the balance in the account at the end of the fourth financial year preceding the current year can be withdrawn.

Money withdrawal process

  • To withdraw money from PPF account, you have to submit Form C. This will be available in the 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 has to be submitted along with the passbook.
  • After the process is complete, 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 year to 6th year of account opening.
  • You can apply for the second loan only after the first loan is closed.
  • Only 25 percent of the amount deposited on PF account can be taken as loan.
  • By depositing money in PPF, along with better returns, you can also take advantage of tax exemption.
  • You can take advantage of tax exemption under section 80C of income tax, the maximum limit of which is up to Rs 1.5 lakh.