PPF Can Now Be Withdrawn After 5 Years For Specific Needs

You can now withdraw the outstanding amounts in your Public Provident Fund (PPF) Account for specific needs like education and serious ailment.

"A subscriber will be allowed premature closure of account or account of a minor whom he is the guardian on the ground that the amount is required for serious ailments or life-threatening diseases of the account holder, spouse or dependent children on production of supporting documents from competent medical authority," the finance ministry said in a notification.

The withdrawal is also applicable for higher education of the account holder or the minor account holder, on production of documents and fee bills in confirmation of admission.

The public provident fund is a scheme that is of 15 years tenure, though one can partially withdraw after 7 years for purposes like marriage, house renovation etc.

The scheme is among the few schemes in the country that offers tax benefit not only under Sec80C of the Income Tax, but, also the interest income earned is not subject to tax.

The idea of the government keeping a larger tenure was to ensure that individuals do raise money for their retirement.

However, the move to allow withdrawal after 5 years for emergencies like Health is a welcome move on the part of the government.

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