PPF is one of the most popular government-backed savings schemes in India because of its guaranteed returns and tax benefits. PPF has a maturity period of 15 years after which you can choose to withdraw funds from your PPF account. Partial withdrawals are also allowed before the account matures (after the 6th financial year from account opening) but only under certain circumstances. Here is all you need to know about PPF withdrawals- partial and complete, premature closure and extension of your PPF account after maturity.
|Type of Withdrawal||Time Period||On what grounds||How much?|
|On Maturity||After 15 years||Any||Full Amount|
|Partial Withdrawal||After 6 years||Any||50% of the balance|
|Premature Closure||After 5 years||Medical, Education||Full Amount|
PPF Withdrawal on Maturity
As mentioned above, the PPF account matures after a term of 15 years. On maturity, you can withdraw the entire corpus. For this, you will have to submit a duly filled Form C at the bank branch or post office where you have your PPF account. The PPF will be terminated thereafter and the corpus will be credited to your bank account.
PPF Extension on Maturity
After your PPF account matures, you have the option to either withdraw the entire corpus or extend the term of the account for as long as you wish in blocks of 5 years. If you do not withdraw your money from the account and close it, the account is extended by default. The account continues to earn interest on extension, on its accumulated balance.
You can choose to extend your PPF account with or without contributions.
PPF Extension without Contributions: This means, after maturity, you keep your PPF account active but do not make any further deposits. Your overall corpus will keep earning interest until you withdraw the entire amount.
PPF Extension with Contributions: After your PPF account reaches maturity, you can keep it active and continue making contributions to it. However, this is only possible if you have submitted Form H to extend the PPF account, within one year of the original maturity of the account. If you fail to submit Form H, you cannot contribute further amounts to the PPF account. Any such contributions will be treated as irregular and will neither earn interest nor get tax deduction under Section 80C.
Note: If you continue your PPF account without deposits for more than one year after maturity, you will not have the option of making further contributions to it.