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PPF withdrawal is completely tax free. The special thing is that both PPF Withdrawal on maturity and partial withdrawal before maturity are tax free. It is listed under the tax implications of the EEE (Exempt-Exempt-Exempt) category.
PPF: Public Provident Fund is one of the most favorite schemes of investors as a safe investment for the future. Here this scheme is also very famous in terms of safe and guaranteed returns. Since after Corona, people have understood a lot that it is necessary to have adequate emergency fund. But with this it is also important to know when and how to withdraw the invested amount. So first of all know that the maturity period of Public Provident Fund is 15 years. However, after the maturity of the account, it can be extended for 5 years.
PPF Partial Withdrawal Process
PPF investors should keep in mind that partial amount deposited in the account can be withdrawn only after 7 years. If you are eligible for PPF withdrawal, you can withdraw a part of the accumulated amount. For this it is important that you know the whole process.step 1:You can download the PPF Withdrawal Form (Form C) online from your bank’s website or you can also collect it by visiting the bank branch. Explain that there are three sections of the PPF withdrawal form.
The first is the declaration section, where you have to provide your PPF account number and the amount you want to withdraw. Also, you have to tell for how many years the account has been active.
Office-use section: In this you will have to enter the account opening date, current balance, date of last PPF Withdrawal (if any), total withdrawal made from the account etc.
Bank Detail Section: In this section you have to enter your bank account number as well as other information related to the account in which the withdrawn amount should be deposited.
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Step 2:Attach a copy of PPF passbook with Form C
Step 3: Submit it at your respective bank branch
After this process your application will be processed. Then the withdrawal amount will be approved as soon as possible. You can deposit this amount in your savings account or you can get a demand draft (DD) for it. Also, you will have to mention about it on the form (PPF Withdrawal), affix a revenue stamp on it and sign it.
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