PPF stands for Public Provident Fund, which is a long-term savings and investment instrument offered by the Government of India. It is a popular savings scheme known for its tax benefits and assured returns. 


This investment product comes with a lock-in period of 15 years, post which you can make a withdrawal. The interest rate, as of FY 2024, stood at 7.1%, providing investors with competitive returns compared to other low-risk investment avenues. 

PPF Withdrawal on Maturity

There are no rules for withdrawing money from a PPF account after maturity. For the same, you must visit the respective bank or post-office with which you have your account and submit a duly filled Form C. Alternatively, investors could opt for online withdrawal of their PPF account.


Your PPF account will be closed once you withdraw your accumulated sum, including the interest. However, closing your PPF account on maturity is not mandatory. You can extend your PPF account in five-year blocks after maturity, with no limits on extensions.

PPF Extension on Maturity

Once you have extended your PPF account by five years, you can choose to either continue or halt your contributions. In either case, there are certain conditions that you need to meet. 

1. PPF Extension without Contributions

When a PPF account matures, investors can keep it active without further contributions instead of closing it. This allows you to earn interest on the balance amount until you close the account. 

2. PPF Extension with Contributions

If you want to extend the duration of your PPF investment, all you have to do is fill out the required form and submit it to your bank/post office. However, to keep your account active, you will have to submit this form within a year of your account’s maturity.


If you let your PPF account remain inactive for over a year post-maturity, you won’t be allowed to make further contributions to it.

PPF Withdrawal Rules after Extension

PPF account withdrawal rules after extension vary, and there are some special conditions you need to meet. Here is an overview of these terms:

1. Withdrawal after Extension without Contribution

Once you've extended the tenor by five years, withdrawals are limited to the available balance. In this case, only one withdrawal per year is permitted.

2. Withdrawal after Extension with Contribution

Following the account extension, withdrawals are limited to 60% of the balance accrued at the extension time, spread over the subsequent five years. Additionally, only one withdrawal is allowed annually.

3. Partial/Premature Withdrawal

Withdrawals from PPF become available from the 6th financial year onwards. Partial withdrawals incur no tax and are limited to once per fiscal year.

Conditions for Complete Premature Withdrawal Before Maturity

The premature withdrawal rules for PPF account specify that a complete withdrawal before the end of the tenor is permissible only under specific circumstances:

  • Medical treatment of the account holder or dependent (spouse, parents, or children) for life-threatening diseases 

  • Payment for higher education of account holder or their children 

  • Residency change of the account holder 


Here are some additional factors you must consider before opting for PPF premature withdrawal: 

  • Premature closure is allowed after six years, from the seventh year

  • Premature closure of reduces interest by 1%

Withdrawal Limits for PPF Accounts Before Maturity

As per the PPF withdrawal rules, you get a partial payout only if your account has completed five years of investment. You can withdraw up to 50% of the PPF account balance from the previous or fourth financial year, whichever is lower. These withdrawals are limited to once in a fiscal year. 


Additionally, if you have an outstanding loan against your PPF, you must repay the same to be eligible for a partial withdrawal. In case you are making a partial withdrawal from the account in the name of a minor or a person of unsound mind, you must submit a declaration.


PPF Partial Withdrawal Process

If you want to make a partial withdrawal from a PPF account, you need to follow these steps: 

  1. Obtain the PPF Withdrawal Form (Form C) from the bank's website or at the nearest branch 

  2. Include a copy of your PPF passbook with Form C

  3. Submit the completed form and passbook copy at your bank branch 


When it comes to PPF withdrawals, online services are limited. You can only download the relevant form from the official website. All steps thereafter have to be carried out offline.


Tax Benefits on PPF

PPF falls under the Exempt-Exempt-Exempt (EEE) category, ensuring all deposits are deductible under Section 80C of the Income Tax Act, 1961. This includes tax exemption during investment, interest accrual, and maturity. However, PPF contributions cannot exceed ₹1.5 Lakhs annually.


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Can I close my PPF account after two years of investment?

No. The PPF account can only be closed after completing five years of investment. Additionally, PPF premature closure is permissible only under certain conditions.

How to withdraw my PPF after reaching maturity?

You can withdraw money from the PPF account by visiting the bank or post-office with which the account has been opened. Then, you must fill out and submit the required form to complete the PPF withdrawal procedure.

How is the amount of your earnings from PPF withdrawal taxed?

PPF falls under the EEE category of investment. Therefore, the amount invested, interest earned, and the total maturity amount are tax-exempt. However, investors can only claim up to ₹1.5 Lakhs per financial year as deduction under Section 80C of the Income Tax Act, 1961.

Can I continue my PPF account even after the 15-year lock-in period?

Yes. You can extend the duration of the PPF account in blocks of five-years after the lock-in period ends. In this case, you can choose whether or not to continue making contributions to the account, with both scenarios having separate conditions.

What is the PPF withdrawal process for NRIs?

An NRI cannot initiate or prolong a PPF but can contribute to an existing account opened as a non-resident Indian. In this case, the withdrawal process will be the same, as set for resident Indians. They must submit the relevant documents to the bank or post-office branch.

What is the maturity period of the PPF account?

The PPF account matures in 15 years, but you can extend it in blocks of 5-years to keep earning interest.

Can I withdraw my PPF before maturity?

Yes, the PPF scheme allows account holders to make partial withdrawals from the seventh year of account opening. Withdrawal from the PPF account is limited at 50% of the balance from the previous or fourth financial year, whichever is lesser. Also, account holders can only make only one withdrawal in a financial year.

What happens if I withdraw my PPF after 5 years?

You are only allowed to make partial withdrawals from your PPF account at the completion of six years from account opening. However, you have the option to prematurely close your account and withdraw the entire amount after the fifth year of account opening under specific conditions.

How much can I withdraw from PPF from the 7th year?

You can partially withdraw up to 50% of the available balance in your PPF account from the seventh year of account opening.

How is PPF withdrawal taxed?

Withdrawals made from PPF accounts are exempt from taxes under the provisions of Section 80C of the Income Tax Act, 1961. This is because they come under the EEE category of investments.

Can I withdraw 100% from PPF?

Upon maturity, you can withdraw the entire corpus by submitting Form C at the designated bank branch or post office where your PPF account is held.

What is the maximum loan amount I can take against my PPF account?

The maximum loan amount from a PPF account is 25% of the balance at the end of the second preceding financial year.

Can we withdraw PPF amount online?

Currently, online PPF withdrawals aren't available. You must visit your bank branch and submit a withdrawal form or Form C, downloadable from the bank's website or obtained in-branch.

Can I close PPF after 5 years?

Yes, PPF accounts can only be closed prematurely after 5 financial years from the opening date.

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