PPF Withdrawal : Meaning, Rules, Closure

What do you mean by PPF Withdrawal?

The individuals or customers can withdraw their funds from their account only when 15 years lock-in period comes to an end. Only after that period, they can have access to their account. However, they can be made partial withdrawal after the end of the 6th  financial year from the opening of the account. Either they can choose the option of premature closure at the end of 5 years from the opening on the amid of medical or education.

PPF Withdrawal on Maturity

Public Provident Fund matures only after the end of 15 years from the date of opening, availing an option to withdraw the entire fund invested in it. A loan against PPF is a common option for many people.

PPF Withdrawal Rules on Extension

PPF withdrawal

There is an option available to PPF account holders that they can extend their tenure in a block of 5 years time and if the account holders do not withdraw or close their account, it automatically gets extended in a block of 5 years. The account then provides interest according to the new tenure as per the applicable interest rate.

PPF Withdrawal after simple extension

The PPF account holder can withdraw the amount in his account when he has chosen to extend the tenure by a block of 5 years, but he can withdraw before the tenure is extended. After the extension, only one-time withdrawal is available per year.

When contributions are made to the extension

PPF account holder has one advantage that they can also extend their account by making an additional contribution. Due to which the account holder keeps contributing to the PPF account and earns interest on additional contribution along with interest on the corpus. Now to avail of this opportunity individual has to fill the Form H to make extension possible but within one year from the date of maturity of the PPF account of the individual.

PPF Withdrawal with contributions but after extension

After the extension of the account was made with contributions, the time is extended over the block of 5 year period but the holder only has the chance to withdraw 60% of the amount accumulated at the time of an extension. He is allowed to make only one withdrawal per year.

 Premature Closure of PPF account

The PPF account holder has an option to close the account before the date of maturity apart from withdrawal, after the completion of 5 years. But to avail of this opportunity, one has to follow the rules given below.

  • This option is available for the treatment of those PPF account holders/parents/children who are facing life-threatening diseases.
  • In the case of individuals children education or Higher education

Procedure for Complete or Partial PPF Withdrawal

  • PPF individuals are required to fill up a Form C.
  • Few details are required like  PPF account number and the amount to withdraw, a number of financial years completed from the opening of the PPF account.
  • Submission of the PPF passbook.
  • The bank will check all the details and eligibility of the account holder for the withdrawal.
  • Individuals can get the amount either credited to their savings account or can get a demand draft (DD).

 PPF Withdrawal Taxability 

PPF deposits enjoy the tax exemption as it lies under the exemption category and at the time of withdrawal the interest and accumulated amount are also exempted from tax.


Is it possible to withdraw money from a PPF account before maturity?

Yes, an individual is allowed to partially withdraw 60% of the amount from the fund but after the completion of five years from the opening of the PPF account.

Is it possible to withdraw the PPF amount online?

Yes, it is possible as PPF provides us the facility of online withdrawals. Only one has to visit the official website and can apply for the withdrawals by making use of their online account details.

Can PPF accounts be closed?

Yes, premature closure of the Public Provident Fund account is possible but only after five financial years after the account is opened.

What is the minimum lock-in period for the PPF account?

The minimum lock-in period of PPF is 15 years after that the individual can withdraw in full after its maturity period. And there is another option of premature withdrawal to individuals which can be made from the start of the seventh financial year.