Process to Close a PPF Account
Closing a Public Provident Fund (PPF) account involves a few steps:
1. Check Maturity: Determine if your PPF account has completed its maturity period. The maturity period for a PPF account is 15 years from the end of the financial year in which the account was opened.
2. Visit Bank/Post Office: Visit the bank or post office where your PPF account is held. Inform them of your intention to close the account.
3. Fill Closure Form: Obtain the PPF account closure form from the bank or post office. Fill in the required details accurately.
4. Submit Documents: Along with the closure form, submit your PPF passbook and any other necessary documents as per the bank or post office’s requirements.
5. Clear Dues: Ensure that all dues, if any, such as pending loan repayments against the PPF account, are cleared before closure.
6. Signatures: Sign the closure form and any other documents as required.
7. Receive Balance Amount: Once the closure request is processed, the balance amount in your PPF account will be paid to you. You can choose to receive it through a demand draft, electronic transfer to your linked bank account, or any other mode specified by the bank or post office.
8. Tax Implications: Be aware of the tax implications of closing a PPF account. The principal amount and interest earned are tax-free, but if you close the account before completing five years, the interest earned becomes taxable.
9. Keep Records: Maintain records of the closure transaction and any related documents for future reference.
10. Confirm Closure: Ensure that the PPF account is closed successfully by verifying the closure entry in your PPF passbook or through any other communication from the bank or post office.