HOW TO WITHDRAW PPF BEFORE MATURITY ?

HOW TO WITHDRAW PPF BEFORE MATURITY?

The maturity period of the Public Provident Fund is 15 years, after which you can withdraw your money. But sometimes, people require cash. Mainly due to covid situation, many people are facing money related problems. In such a situation, people plan to withdraw some money from their Public Provident Fund (PPF) to meet their needs. But before doing this, you should be aware of the rules for withdrawing money from PPF before maturity and the charges imposed on it. We are telling you about pre-maturity withdrawal from PPF.

RULES REGARDING PREMATURE PPF WITHDRAWAL

Following are the essential rules regarding withdrawal of amount from your PPF account before maturity:

• Some money can be withdrawn from the sixth financial year after opening the account. For example, if the account was opened on February 1, 2020, withdrawal can be made from the financial year 2025-26.
• No tax on premature withdrawal from PPF account
• Only one partial withdrawal is allowed per financial year.
• ·       50% of the current balance in the account at the end of the financial year preceding the current year. For ex-50% of the balance as of March 31, 2018 (the current financial year is 2018 – 2019; hence the financial year immediately preceding the current financial year is 2017 – 2018, which ends on March 31, 2018)
• ·       50% of the current balance in the account at the end of the fourth financial year, before the current year. For ex-50% of the balance as of March 31, 2014 (Current financial year is 2017 – 2018 so the fourth financial year immediately preceding the current financial year is 2013 – 2014, which ends on March 31, 2014)

PROCESS OF PREMATURE PPF WITHDRAWAL

You can withdraw part of the deposit amount. Here are the steps to withdraw partial money from your PPF account:

1. Download the online PPF withdrawal form (Form C) from your bank's website, or you can get it from the bank branch. There are three sections in the PPF withdrawal form-

• Declaration Section: In this section, you have to provide your PPF account number and the amount you want to withdraw. Also, you need to enter the number of years the account has been active.
• Office-Use Section: Here, you need to enter details like date of account opening, current total balance amount, and date of last withdrawal (if any), total withdrawal made from the account, etc.
• Bank details section: In this section, you have to enter the Bank account number and other essential details of the account in which the withdrawal amount should be deposited.

1. In the second step, you have to attach a copy of the passbook of the PPF account along with Form-C.
2. At last, you have to submit it to your respective bank branch.

  After that, your application will be processed, and the withdrawal amount will be sanctioned. You can get the amount deposited in your savings account or get a Demand Draft (DD) for the same. You have to mention it on the form, paste a revenue stamp on it and sign it.