Partial Withdrawal in PPF Account after Extension

There are certain PPF withdrawal rules after extension. In case you have extended your PPF account after its maturity i.e. 15 years have been completed of your PPF account. After that suppose you have extended for another 5 years.

In such case, you are allowed to withdraw from your PPF account in the following manner:

• You are allowed to withdraw only once in every financial year.
• You need to make use of form C for making partial withdrawal from your PPF account. It is mandatory to submit a copy of your PPF passbook along with form C.
• You can make partial withdrawal from PPF Account after extension of PPF account without contribution or with contribution.

Partial Withdrawal in case of Extension without Contribution

If you have extended your PPF account without any further contribution to be made then the total amount of withdrawal is capped to the credit balance at the beginning of the extension period of 5 years. For example, on maturity the credit balance in your PPF account is Rs 15 lakhs and you have extended it for 5 more years. Then you will be able to withdraw only upto Rs 15 lakhs during the extended period.

Partial Withdrawal in case of Extension with Contribution

If you have extended your PPF account with further contribution to be made then the total amount of withdrawal is capped to 60% of the credit balance at the beginning of the extension period of 5 years. For example, on maturity the credit balance in your PPF account is Rs 15 lakhs and you have extended it for 5 more years. Then you will be able to withdraw only upto Rs 9 lakhs during the extended period.

It is important to note that there is no tax on partial/premature withdrawals from the PPF account.