Ppf amount withdrawal and its tax implications

Tax planning 217 views 3 replies

I have been contributing to PPF from the last 18 years, can i withdraw the PPF amount totally or How much can i withdraw. If I withdraw totally what is the tax implication for the same?

Replies (3)

No Tax Liability under IncomeTax Act

​​​​​​Salient features including Tax Rebate

  • An individual can open account with INR 100/- but has to deposit minimum of INR 500/- in a financial year and maximum INR 1,50,000/-
  • Joint account cannot be opened.
  • Account can be opened by cash / Cheque and In case of Cheque, the date of realization of Cheque in Govt. account shall be date of opening of account.
  • Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another.
  • The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts.
  • Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.
  • Maturity value can be retained without extension and without further deposits also.
  • Premature closure is not allowed before 15 years.
  • Deposits qualify for deduction from income under Sec. 80C of IT Act.
  • Interest is completely tax-free.
  • Withdrawal is permissible every year from 7th financial year from the year of opening account.
  • Loan facility available from 3rd financial year.

The maturity amount is completely tax free. 

Thanks alot ma'am that was helpful.


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