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PPF Withdrawal Procedure: If you have a Public Provident Fund account, and you have been using it. But now for some reason want to close it before maturity. So this news can prove to be useful for you. In this news, we are going to give you complete information about closing PPF account before maturity. Which can prove to be very useful for you.
This is how you get benefit
You get good returns and tax savings in it, due to which the number of people investing in PPF is increasing. On behalf of the central government, the amount deposited in PPF gets the benefit of interest at the rate of 7.1 percent. PPF account can be opened in post office or any bank branch. A minimum of Rs 500 and a maximum of Rs 1,50,000 can be deposited in the PPF account every year.
Entire amount is tax free
This is the scheme of EEE category. Which means that the amount deposited every year, the interest earned on this amount every year and the entire amount received at the time of maturity are tax free.
Investment is made for 15 years
It is known that PPF is a kind of safe investment scheme. Investment can be made in this for 15 years. In this, the maturity period of the account can be extended for 5 years. If you want to withdraw your money even before maturity or want to close it, then for partial withdrawal you have to follow certain conditions. After 15 years, the entire amount deposited in the account can be withdrawn. You have to pay some penalty for this.
what is the rule
PPF account holder can withdraw 50% amount from PPF account in the 7th year. PPF account is completely locked for the first 6 years. If a person has to start investing in the financial year 2020-2021, then he can withdraw money only after 2025-2026 in case of emergency. You do not have to pay any tax even if you withdraw money before time. If the account holder dies before the maturity of the PPF account, then this condition of 7 years is not applicable to the nominee of the account holder. Nominee can withdraw money anytime.
account is closed earlier
Many times people close their PPF account even before 15 years. PPF account can be closed prematurely if the account holder or dependents have a life-threatening illness or need money for higher education. If it can be closed before the maturity period, then 1% interest is deducted from the date of opening till the date of closure.
withdraw your money like this
You can withdraw money from PPF account ahead of time. For this you have to submit Form C. This form is available in post office and bank. In the form, you will have to fill the account number and the amount you want to withdraw. You have to submit the form along with the passbook. The amount will be deposited directly into your savings account, or you can take the same through demand draft.
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