Title: PPF Withdrawal: A Step-by-Step Guide and Eligibility Criteria
Published By: Business Desk
Last Updated: September 21, 2023, 07:00 IST
Image Source: News18
The Public Provident Fund (PPF) is a government-backed financial scheme that offers individuals the opportunity to build wealth through savings while enjoying various tax benefits. Primarily designed for retirement planning, emergencies, and future goals, there may be instances where individuals need to withdraw funds from their PPF accounts. In this article, we will explain the eligibility criteria, required documents, and step-by-step process for making withdrawals from a PPF account.
Eligibility:
To make partial withdrawals from a PPF account, a minimum of seven years must have passed since the end of the financial year in which the initial deposit was made. Account holders can make one partial withdrawal per year, subject to certain rules regarding the maximum withdrawal amount. The withdrawal limit is determined by the lower of the two amounts mentioned below:
a) 50% of the account balance at the end of the fourth financial year preceding the withdrawal year, or
b) 50% of the balance at the end of the preceding year.
Purpose of PPF Withdrawal:
Partial withdrawals from a PPF account are permitted for specific reasons. It is important to be aware of these reasons before initiating a withdrawal request. Eligible purposes include funding higher education, covering medical expenses, purchasing or constructing a home, and financing children’s weddings.
The PPF Withdrawal Process:
Here is a step-by-step guide on how to withdraw money from a PPF account:
1. Visit the Bank or Post Office:
– Go to the bank or post office where the PPF account is held.
– Carry the PPF passbook and valid identification documents for verification purposes.
2. Collect the Withdrawal Form:
– Request the withdrawal form from the bank or post office.
– Fill out the form accurately, providing the reason for the withdrawal.
– Ensure that all necessary information is provided correctly to avoid delays in processing the request.
3. Additional Documents:
– Depending on the purpose of the withdrawal, additional documents may be required as proof.
– For medical expenses, medical bills may need to be provided, while a wedding invitation may be required for wedding-related withdrawals.
4. Submit the Withdrawal Form:
– Hand in the completed withdrawal form along with the necessary documents to the bank or post office.
– The application and documents will be thoroughly reviewed to ensure compliance with PPF regulations.
5. Processing and Disbursement:
– Upon successful verification, the bank or post office will process the withdrawal request.
– Approved funds will either be transferred to the linked bank account or provided as a cheque, according to the account holder’s preference.
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