Published By: Business Desk
Last Updated: September 21, 2023, 07:00 IST
One can make partial withdrawals from a PPF account for specific reasons. (Representative image)
PPF Withdrawal: Based on why you’re withdrawing money, you might have to give some additional documents as proof.
The Public Provident Fund (PPF) is a government-backed financial scheme that offers a chance to build wealth through savings and comes with several tax benefits. It’s mainly meant for saving for retirement, emergencies, and future plans. However, there are times when you might have to withdraw money out of your PPF account. Here, we explain the conditions you need to meet, the documents you will require, and the step-by-step process for making withdrawals from your PPF account.
Eligibility
You can make partial withdrawals from your PPF account, but only after seven years have passed since the end of the financial year in which you made your first deposit. Once a year, PPF account holders can make a partial withdrawal, but there are some rules about how much money you can take out. The maximum withdrawal amount is limited to the lower of the two following amounts:
a) 50 per cent of the account balance at the end of the fourth financial year preceding the year of withdrawal, or
b) 50 per cent of the balance at the end of the preceding year.
Purpose of PPF Withdrawal
One can make partial withdrawals from a PPF account for specific reasons, so it’s important to know what these reasons are before you request a withdrawal. These reasons include funding higher education, covering medical expenses, buying or building a home, and covering the costs of your children’s weddings.
The PPF Withdrawal Process
Here are the steps to withdraw money from your PPF account:
Visit the Bank or Post Office: Go to the bank or post office where you have your PPF account. Make sure to carry your PPF passbook and some identification documents for verification.
Collect the Withdrawal Form: Ask for the withdrawal form from the bank or post office. Fill out the withdrawal form carefully, and mention the reason for your withdrawal. It’s important to provide all the necessary information correctly to prevent any delays in processing your request.
Based on why you’re withdrawing money, you might have to give some additional documents as proof. For example, if it’s for medical expenses, you might need to show medical bills, or if it’s for a wedding, a wedding invitation might be required.
Hand in the completed withdrawal form and any necessary documents to the bank or post office. They’ll carefully check your application and documents to make sure everything follows the PPF rules.
The bank or Post office with process your request after due verification. If approved, the money will be either transferred to your linked bank account or given to you as a cheque, depending on your preference.