Ppf withdraw

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Yogesh Bansal

Yogesh Bansal (Querist)
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29 June 2013 Dear sir,

can we withdraw ppf amount before due period in case of amergency.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 June 2013 No premature withdrawal is allowed for PPF accounts.

Are withdrawals from PPF account allowed?

Any time after the expiry of the 5th year from the date that the initial subscription is made, you become eligible to withdraw an amount of not more than 50% of the previous year’s balance or of the 4th year immediately preceding the year of withdrawal, whichever is less. If you have taken any loan on your PPF, this also gets factored in and reduces your balance. You cannot make more than a single withdrawal in the year. You need to apply with Form C for any withdrawals.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 June 2013 Further, loan facility is available against a PPF account. The first loan can be taken in the third year of opening the account i.e., if the account is opened during the year 2010-11, the first loan can be taken during the year 2012-2013. The loan amount will be restricted to 25% of the balance including interest for the year 2010-11 in the account as on 31/3/2011. The loan must be repaid in a maximum of 36 EMIs. You can take a second loan against your PPF account before the end of your sixth financial year, but your second loan can be taken only once your first loan is fully settled.

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