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What is the new rule of PPF?

What is the new rule of PPF?

Here are five changes in PPF account rules that you must know: √ Removal of restrictions in number of deposits in a year. √ Additional reasons allowed for premature closure of account. √ Continuation of PPF Account after 15 years without making deposit.

What are the rules for PPF withdrawal?

The amount which you can withdraw from your PPF account shall be restricted to higher of fifty per cent of the balance standing at the end of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year.

Can I withdraw my PPF amount before maturity?

PPF account-holders can withdraw a complete amount if the account-holder, its life partner or any of the dependents (parents or children) faces life threatening disease. The PPF account closure is also allowed in case the account-holder needs money for higher studies for himself or for its children.

When can PPF be withdrawn?

five years
How much money can be withdrawn from a PPF account? You can withdraw the money partially after completing five years from the date of opening the account. However, you can only withdraw up to 50% of the total account balance at the end of the fourth year from the date of opening.

How is PPF withdrawal amount calculated?

The amount that can be withdrawn is equal to the lower of: 50% of the PPF account balance as at the end of the year immediately preceding the current year, or, 50% of the account balance as at the end of the 4th year, immediately preceding the current year.

Can I change PPF amount every year?

The interest applicable is credited at the end of the year. Therefore, it is recommended to contribute to your PPF account before 5th of the month. You are allowed to make only 12 transactions in a calendar year and the maximum amount you can deposit in your PPF account cannot exceed 1.5 Lakh in a year.

What is the minimum age to open PPF?

There is no age requirement for opening a PPF account. Adults, as well as minors, can have a PPF account. However, in the case of minors who are below 18 years, the account should be operated by a guardian on his/her behalf until he/she turns 18. People who wish to open a PPF account have no age requirements.

Can we deposit one time PPF?

While the maximum investment limit is Rs 1.5 lakh in a financial year, a minimum annual investment of Rs 500 is necessary to keep a PPF account active. An account holder may deposit money maximum 12 times in his/her PPF account in a year.

What are the rules for withdrawal from PPF account?

Following are the important rules related to withdrawal from your PPF account before maturity: 1 Partial withdrawals can be made from the 6th financial year after the account is opened. 2 There is no tax on partial/premature withdrawals from the PPF account 3 Only one partial withdrawal is allowed per financial year.

Which is the maximum amount you can deduct from PPF?

The maximum limit of Rs 1.5 lakh under Section 80C implies that you cannot claim deduction on the full amount when the sum of your total contribution in PPF account and other schemes allowed under this section of the Income Tax Act is more than Rs 1.5 lakh in a financial year.

Is there lock in period for PPF contributions?

The Public Provident Fund ( PPF) scheme comes with a lock-in period of 15 years. Contributions made towards the account along with the interest that has been generated can be withdrawn only after the completion of the duration of the scheme. However, under certain circumstances, you can opt for a partial withdrawal or close the account prematurely.

Is there a limit to how often you can open a PPF account?

There is no limit on the number of times you can extend the duration of your PPF account in your lifetime. And after the 15th year, you can maintain the account with or without making investments.