PPF Withdrawal & Premature Closure Rules Explained

PPF (Public Provident Fund) is a long-term investment vehicle. You will get assured returns against your investment and seek tax deductions of up to Rs1.5 lakh under Section 80C of the Income Tax Act by investing in it. The present PPF interest rate of 7.1 per cent lets an investor overcome inflation. As a result, PPF is among the most prominent risk-free investment options among investors with a low-risk profile. A Public Provident Fund (PPF) contribution must be locked in for at least 15 years. However, if you want to invest for a longer period of time, you can do so by extending your account for a block of 5 years. The minimum PPF deposit is Rs 500, with a gross investment of 1.5 lakh per fiscal year. PPF investments are also classified as Exempt-Exempt-Exempt (EEE), which ensures that the amount you invest, the interest you receive, and the overall corpus at the time of withdrawal are all tax-free. After 15 years from the date of account opening, you can withdraw your entire PPF corpus. After the end of the sixth fiscal year from the date of account opening, you can render partial withdrawals too. A premature account closure after five financial years is also with PPF for emergencies. Now let's talk about PPF withdrawal rules in brief.