PPF Update Withdrawal Rules Are Modified
Public Provident Fund (PPF) is the most favoured long term investment option for low-risk investors. PPF is one of the government-backed investment schemes which provide high returns on maturity. But its perks are not limited to these only, this scheme is also tax exempted by the government, thus the principal & interest received is not taxable under this rule.
The maturity period of the PPF scheme is 15 years, and some people assume that the deposited amount is not withdrawn midway. Instead, there are certain conditions where the government allows you to withdraw your deposited amount. To read about those circumstances under which you become eligible for complete withdrawal before maturity concentrate below.
Conditions Which Make You Eligible
PPF account holders can withdraw money when their wives or children are in critical condition. Another condition is when you want to ensure your child’s safe future with educational benefits. Even after becoming a Non-Resident Indian (NRI), one can close the PPF account.
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You Will Need a Minimum 5 Years
Account-holders can close their PPF account only when the scheme has completed five years. If you want to close your account before the maturity period then 1 per cent amount is applicable to be deducted from the date of opening. However, if the account holder dies before the maturity period then this condition does not bound the nominee. After the death of the account holder, the nominee can choose to either withdraw the amount before five years or can choose to continue.
Account Closure Process
To close the PPF account a person needs to fill out the closure form and attach all the required documents, photocopy of the passbook and original is also needed. After completing the formalities just submit your application to the post office or bank where your account was opened.
