Produced by: Navneet Dubey
Designed by: Manoj Kumar
The Public Provident Fund, or PPF, is a tax-exempt saving scheme with the potential to create wealth over the long term. It matures after 15 years from the end of the financial year you made your first deposit.
You can make partial withdrawals only after seven years from the end of the financial year. You can make one partial withdrawal per year, subject to certain conditions.
Post maturity, you can either close the account and withdraw the entire amount or extend it for five years with or without making further deposits.
The maximum amount you withdraw during the investing period is capped at the lower of the following scenarios. For instance, you will get 50% of the PPF balance at the end of the 4th financial year preceding the withdrawal year or 50% of the PPF balance at the end of the preceding year.
It is crucial to define the purpose of withdrawal. PPF allows you to make partial withdrawals only in cases of higher education, house purchase or construction, medical treatment and children's weddings.
You need to go to the bank or Post Office (P.O) where you have opened your PPF account and collect the withdrawal form-C. Fill in the form specifying the purpose of withdrawal, and ensure that the information matches the records.
Depending on PPF withdrawal purposes, you may need to provide supporting documents. For instance, you need to provide medical bills and a marriage invitation.
Submit the necessary documents to the bank or P.O. Once the PPF application is processed and approved, you will receive the PPF amount in your bank account. You might even receive a cheque from the financial institution.
The PF scheme is a powerful instrument for long-term tax-free savings. It caters to different needs, from securing retirement to financing children's education or marriage.