Public Provident Fund (PPF) Account Partial Withdrawal, Loan Facilities: 10 Points

Public Provident Fund (PPF) Account Partial Withdrawal, Loan Facilities: 10 Points With a minimum deposit requirement of Rs. 500 and a maximum of Rs. 1.5 lakh, PPF or Public Provident Fund remains one of the most popular small savings schemes. PPF accounts have a maturity period of 15 years, which can be extended in blocks of five years. Partial withdrawals from PPF are allowed after the account completes a specified number of years. Also, a loan facility is available on PPF accounts. Currently, PPF accounts fetch an interest rate of 7.6 per cent per annum (compounded yearly). They are revised on a quarterly basis. Here are 10 things you must now before you invest in PPF: 1) Partial withdrawal from PPF accounts are permissible the seventh financial year from the year of opening account, according to India Post's website - indiapost.gov.in. 2) A depositor can make partial withdrawals, once every year from his or her PPF account. 3) Partial withdrawals from PPF accounts are also tax-free. 4) "PPF deposits fall under the EEE (Exempt, Exempt, Exempt) tax category, which means an investor is not liable to pay tax at all three levels - investment, earning and withdrawal. All payments from PPF shall be exempt from tax under Section 10 (11) and partial withdrawals or premature closures are no exceptions," says Naveen Wadhwa, DGM at Taxmann.com. 5) Partial withdrawal is restricted to 50 per cent of the credit balance at the end of the fourth year immediately preceding the year of withdrawal or the year immediately preceding the year of withdrawal, whichever is lower...[Read More Points]                                            Unsubscribe

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