PPF (Public Provident Fund) account is the scheme under Government of India and is long-term saving plan on which the investor earns regular interest and is good high end tax free return investment. PPF account can be terminated at any time after the end of 15 years from the date of opening of the account. Therefore, PPF account expiry duration is that of 15 years. So, one may withdraw the entire amount at the time of account closing any time after 15 years. In order to close the PPF account one has to apply in Form C and has to produce PPF account pass book.
In case the account holder wants to continue the account even after the end of 15 years, then account holder can apply for the extension of the same for a further time-period of 5 years. In this case, account holder is allowed to do partial withdrawal from the PPF account by applying for the same through Form C and is subjected to the clause that the total withdraw during the extended period of five years should not be more than 60 percent of the total balance in the account during the time the extension was applied.
PPF account has a 5 year locking period during which no one can withdraw any money from their account. Its only after the end of 5 years from the opening date of PPF account one may start the withdrawal subjected to the condition that maximum withdrawal allowed is fifty percent of the amount present in his account at the end of 4 years or the end of the year prior to in which withdraw is to be made, whichever is the minimum amongst the two.
May 22nd, 2012 by admin | Comments (0)