PPF Withdrawal

PPF also known as public provident fund is a great investment tool because of the tax free returns it provide and also it is one of the safest instrument when it comes to investment. However there is one limitation of this investment that is lock – in period which is 15 years and therefore it does not provide liquidity when the investor wants it. There are certain important points relating to withdrawal of PPF money, let’s look at some of them –

  1. One can withdraw only partial amount, full withdrawal can be made only after completion of 15 years.
  2. Partial withdrawal of money can be done after completion of 5 year onwards since one started making contribution in the PPF account. For example if you started in the year 2004 than you can withdraw after completion of the year 2009 and not before that.
  3. The withdrawal limit should not exceed 50% of the balance at the end of the fourth year, or 50% of the balance at the end of the immediate preceding year, whichever is lower. For example if you want to withdraw in 2010 (for the PPF account which is started in the year 2000) than the amount which one can withdraw is 50 percent of balance at the end of the year 2004 or 2009 whichever is lower.
  4. One can withdraw only once in a year, multiple withdrawals in one year are not allowed.
  5. One does not have to pay tax if he or she withdraws from PPF before maturity.
0 comments… add one

Leave a Comment


Related pages


advantage of hire purchasejournal entry for outstanding salarydifference between bank loan and bank overdraftcost concept accountingadvantages of payback period methodlifo advantages and disadvantagesadvantages and disadvantages of merger and acquisitionpure conglomerate mergermateriality principle accounting definitionwhat is ecs in bankingdefine shareholdingadvantages and disadvantages of investment appraisalwhat is dishonour of billsocialism advantages and disadvantagesprofitability ratios formulasconsumer nondurable goodscharacteristics urbanisationis nigeria a mixed economyadvantages and disadvantages of inventorywhat are the advantages of barter systemdirect quote forexbenefits of demat accountcommand economy advantages disadvantagesdefine certificate of depositswhat is unearned income in accountingexamples of semi durable goodswhat is the meaning of escrow accountunsystematic definitionfactors affecting elasticitystatutory liquidity ratio formulajournal entries for provisionsmoil ipo pricewhat is the theory of absolute advantagedefine fictitious assetscurrent liabilities examples balance sheetpricing strategy skimminggatt full formgolden rules of accounting with journal entriespremium pricing advantages and disadvantagesunitary price elasticity of demandsubstitute effect and income effectdifferent kinds of factoringcalculation of net worth of companyfeatures of urbanisationtraditional economy definition examplehow is crr calculateddifference between job and process costingdisadvantage of fdimarket economy characteristics advantages disadvantagesconservatism principle accountingdiscounting and rediscounting of billsprofibility ratioskim strategydupont analysis roedisadvantages of mergerswhat does penetration pricing meandefine centrally planned economyconglomerate mergerunearned revenue exampledual aspect concept of accounting with examplesmeaning of advantage in hindifunctions of derivatives marketdebit card wikidebentures in hindiexamples of merchant banksmanufacturing overheadsadvantage of payback periodinterest rate subventionthe autocratic leaderbraeburn capital websitefund flow and cash flowprivatationscfa full form