Investment tenure for a public provident fund scheme is 15 years. Investors can not withdraw their entire invested amount from PPF account for a period of 15 years.
Withdraw from a public provident fund account can be done only after expiry of 15 years from the end of the year in which you make your initial subscription to public provident fund scheme.
As per the PPF scheme, you can make partial withdrawals from public provident fund account after the 5th year. Withdrawal can be done once a year after the 5th year i.e. from the 6th year onward.
Such withdrawal from public provident fund account should not exceed the lower of 50% of the balance amount at the end of the 4th year or 50% of the balance at the end of the immediate preceding year.
It’s not required to state any reason for PPF withdrawals. It does not require repaying the withdrawn amount to your public provident fund or PPF Account.
Only in the case of death, the entire amount in PPF account can be withdrawn before the expiry of 15 years. In case of death of the subscriber the nominee cannot continue the account of deceased subscriber.
If you have a public provident fund account for a minor then the entire amount can be withdrawn after the expiry of 15 year for the benefit of such minor.
If you want to withdraw before expiry then the guardian should give following certificate on application for withdrawal;
“Certified that the amount sought to be withdrawn is required for the use of ………………………… Who is alive and is still a minor.”
Investment in a public provident fund is always intended for a long term and you should not withdraw this amount unless and until it’s required.
Public Provident Fund scheme has given an option to withdraw money from public provident fund account partially. Withdrawals from your public provident fund or PPF account is tax exempted.