Partial Withdrawal from PPF
Partial withdrawals are allowed after 5 years of continuous contributions, but there are limitations:
- Amount: You can withdraw a maximum of 50% of the account balance at the end of the fourth preceding financial year or 50% of the current balance, whichever is lower.
- Frequency: Only one withdrawal is allowed per financial year.
- Penalty: While the withdrawal is tax-free, you will lose the interest on the withdrawn amount for that year.
Can I Withdraw From PPF Without Penalty?
The Public Provident Fund (PPF) is a popular long-term investment scheme in India, offering attractive interest rates and tax benefits. However, many wonder if they can withdraw funds from their PPF account without penalties. Here’s a breakdown of the rules,
- There is no penalty for complete withdrawal at maturity (15 years).
- Partial withdrawals are allowed after 5 years but with limitations and loss of interest.
- Special cases allow higher withdrawals under specific circumstances.
- Withdrawals are tax-free in all cases.