PPF withdrawal: A simple guide to partial, premature and full withdrawals

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A PPF account runs with a 15-year lock-in counted from the end of the financial year in which you open it. You can withdraw the entire balance tax-free at maturity. Before that, access is limited: you may take only restricted partial withdrawals after completing a minimum holding period, and full closure is allowed early only under specific conditions. Understanding which bucket you fall into—partial withdrawal, premature closure, or post-maturity—prevents delays and rejection.

Partial withdrawals before maturity

A subscriber is allowed one withdrawal in a financial year after completing five years from the year of account opening. For example, if the account was opened in 2010–11, the first withdrawal can be made during or after 2016–17.

The maximum withdrawal amount can be up to 50 percent of the balance at the end of the fourth financial year preceding the year of withdrawal, or the balance at the end of the previous financial year, whichever is lower. For instance, if withdrawal is made in 2016–17, it can be up to 50 percent of the balance as on 31.03.2013 or 31.03.2016, whichever is lower.)

Premature closure in special cases

Closing the PPF entirely before 15 years is permitted only in defined situations such as serious medical treatment for self or dependents, higher education, or a change in residency status. The account must have completed at least five financial years, and on premature closure, past interest is typically reduced by one percentage point for the entire tenure. Because of this penalty and the loss of future compounding, weigh the decision carefully and use this route only when necessary.

What happens after 15 years

At maturity, you can withdraw the full balance and close the account, or you can extend it in five-year blocks. If you extend without further contributions, you may withdraw any amount once each year, keeping the rest invested to earn interest. If you extend with contributions (by submitting the extension option within a year of maturity), you can still withdraw during the block, but the total you take out over the five years cannot exceed 60 percent of the opening balance of that block. Picking the right extension mode depends on whether you need ongoing tax-saving contributions or prefer maximum withdrawal flexibility.

How the withdrawal process works

For a partial withdrawal, submit the prescribed withdrawal form (commonly Form C) at the bank or post office where your PPF is held, along with your passbook and KYC as asked. State the account opening date, years completed, and the amount requested. On maturity or extension, submit the closure or withdrawal request as applicable; proceeds are generally credited to your linked savings account. Ensure your name, PAN/Aadhaar and bank details match records to avoid processing hiccups.

Taxes, limits and planning pointers

PPF withdrawals—partial, premature (subject to eligibility), and at maturity—are tax-free under current rules. Remember you can make only one partial withdrawal per financial year, so time it to cover a full year’s requirement if possible. If you intend to extend with contributions, file the extension option within a year of maturity; missing the window can restrict fresh deposits. Finally, every rupee withdrawn is a rupee that stops compounding—draw only what you need and let the rest grow.

Bottom line

Treat PPF as your safe, long-horizon core and access it with a plan. Use partial withdrawals sparingly after year six, reserve premature closure for genuine exceptions, and choose the right extension mode after year 15. When you follow the timelines, caps and forms, withdrawing from PPF stays smooth—and your long-term corpus stays on track.