The Public Provident Fund scheme is widely used in India because it enables people to earn a steady return and reduces the amount of tax they need to pay. Even though retirement savings are its primary purpose, some people find themselves requiring access to their funds long before they start drawing upon them. New rules will be introduced in 2025 that’ll allow greater freedom and clarity to PPF account holders.
Partial Withdrawal Rules
you’re eligible for partial withdrawal once your PPF account completes 5 years. You may choose to take up to 50% of the total balance in your PPF account at any time after your fourth year of investment. Suppose your account balance was ₹5 lakhs in 2021, you can withdraw up to ₹2. 5 lakhs in 2025.
Premature Withdrawal Rules
Withdrawal of part or full amount may be made before maturity in case of medical expenses, education needs or shifting of place of residence. You can do this 5 years into the account and 1% of the interest earned may be deducted from your withdrawal.
Full Withdrawal After 15 Years
A PPF account matures after 15 years. At the end of the maturity period, an investor can select from among three choices.
- The account can be ended by taking out the entire sum.
- The account can be extended for an additional 5 years.
- Continuing the account by not making any additional deposits and receiving interest.
In case the investor wishes to continue with the account, they’ve to submit Form H within one year of the delayed extension.
Conclusion
The PPF withdrawal rules for 2025 provide greater clarity and ease to investors. The flexibility introduced by the new withdrawal rules allows investors to plan their investments more effectively. Being aware of these rules is crucial if you choose a PPF account to save your money.
Also Read: Widow Pension Scheme 2025: Increased Benefits and Financial Security for Women