How to Withdraw PPF Money?
- Amount in PPF can be partially withdrawn from 7th financial year onwards from the opening of the account and only one partial withdrawal is allowed every financial year.
- The amount of withdrawal is capped to 50% of the credit balance at the end of the fourth year immediately proceeding the year of withdrawal or the year immediately preceding the year of withdrawal, whichever is lower.
Following table would help you understand the calculation of amount withdrawn from PPF account that can be availed from 7th year onwards:
|Year||Amount Deposited||Opening Balance||Starting Balance||Interest Earned||Closing Balance||Loan||Withdrawal|
In the above table, we have made calculations considering that Rs 1,00,000/- has been deposited in each financial year on/before 5th April of respective year. The rate of interest is taken as 8.1% which is the prevailing rate in PPF account.
Extension of the Maturity Period beyond 15 Years in PPF Account
A Public Provident Fund (PPF) account gets matured after the completion of its term i.e. after 15 years from the end of the year in which the account was opened.
The account term can be extended for a minimum term of 5 years and then in multiple of 5 years thereon, beyond the maturity period.
For extending the tenure, he needs to submit Form H within one year from the date of maturity. It can be extended either by depositing fresh funds or without making any fresh deposit.
If the account holder makes fresh deposits during extended period, those deposits will be added to the balance held at the end of the 15th year and the total amount will be treated as principal on which interest will be calculated. If he does not deposit any fresh fund during extended period, the interest will be calculated on the balance amount held at the end of the 15th year.
Claim of Funds by Nominee or Legal Heir in a PPF Account
If the PPF account holder has already nominated the PPF account and he dies before the maturity of PPF account then the nominee(s) can claim funds in a PPF account after the death of the account holder. For claim purpose, the nominee(s) will have to submit death certificate as a proof of death of the account holder.
If more than one nominee is existing in the PPF account then all the nominees can claim funds in the proportion as mentioned by the account holder in the nomination form.
The PPF account continues to earn interest till the notified rate even after the death of the account holder.