PPF withdrawal: Eligibility, documents needed and process explained
Provident Fund is a tax-exempt saving scheme with the potential to create wealth over the long term. Here are the key processes for withdrawal from the PPF.
Eligibility
Partial withdrawals are allowed only after seven years from the end of the financial year in which the first deposit was made.
PPF subscribers can make one partial withdrawal per year.
The withdrawal amount is subject to certain conditions.
The maximum amount that a subscriber can withdraw is capped at the lower of the following two amounts:
a) 50% of the account balance at the end of the fourth financial year preceding the year of withdrawal, or
b) 50% of the balance at the end of the preceding year.
Purpose of withdrawal
PPF allows partial withdrawals only in case of specific purposes, such as higher education, medical treatment, purchasing or constructing a house, and financing children’s weddings.
Withdrawal process
Visit the bank or post office that holds the PPF account and collect the withdrawal form. Fill the form accurately, specifying the purpose of withdrawal, and ensure that the information matches the records.
The form, along with necessary documents, has be submitted to the bank or post office. After the application is processed and approved, the amount is credited to the linked bank account or given as a cheque.
Documents
Depending on the purpose of withdrawal, the account holder may need to provide supporting documents, such as medical bills for medical treatment, or a wedding invitation.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
