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PPF Withdrawal Rules: Understanding Withdrawals Using a PPF Calculator



Understanding Withdrawals Using a PPF Calculator

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The PPF is a long-term savings vehicle backed by India’s government. It offers reasonable interest rates and tax benefits, making it a good choice for people who want steady returns and tax savings.

But it’s essential to understand the rules about withdrawing money from a PPF to get the most benefits. This article will explain PPF withdrawal rules and why using a PPF calculator helps plan withdrawals properly. By the end, you will know when and how to access the PPF money.

Introduction to PPF (Public Provident Fund)

The Indian government supports the PPF as a long-term way for you to save money. It’s a safe way to save money and earn interest. With PPF, you can pay a fixed amount each year and earn interest.

Eligibility criteria for PPF account

Any Indian citizen can open a PPF account. There’s no maximum age, but the minimum is 18. However, parents or guardians can open PPF accounts for children under 18. They must show their PAN card and other ID documents to open a PPF account.

Benefits of investing in PPF

PPF offers several benefits to investors, like –

  • It provides a way to invest without paying tax with reasonable interest rates. The current rate is 7.1% per year, compounded annually.
  • The interest earned and the final amount are both tax-free.
  • PPF has a long 15-year period, which helps build up a lot of money.

You can also extend the account for five more years after it matures. It comes with a PPF calculator that helps you analyse different components of your PPF.

Rules for PPF Withdrawal

Types of withdrawals allowed

Two types of withdrawals are allowed from a PPF account: partial and complete.

Partial withdrawals can happen every year from the 7th year onwards, up to 50% of the balance at the end of the 4th year before the withdrawal year.

Complete withdrawals are only allowed after the account matures, 15 years after opening.

Conditions for premature withdrawal

Premature withdrawal from PPF is allowed only in specific circumstances. These include higher education of children, purchase or construction of a house, treatment of serious diseases, and other specific purposes.

However, the account must be at least five years old for early withdrawal. Additionally, we can only withdraw up to 50% of the balance at the end of the fourth year before the withdrawal year.

Withdrawal process and documentation

To withdraw money from our PPF account, we must submit a withdrawal form. The documents should be submitted to the bank or post office where we have the account.

The required documents may vary depending on why we are withdrawing. For example, we may need to show admission proof and fee receipts for education.

Tax implications of PPF withdrawal

The final PPF amount and interest earned are entirely tax-free. However, if we withdraw early from PPF, the withdrawn amount may be taxable based on our income tax rate.

Additionally, the withdrawal is made five years after opening the account. In that case, the interest earned on the withdrawn amount will also be taxed.

Importance of a PPF Calculator

A PPF calculator is an online tool that helps you calculate various aspects of your PPF investment. It is a simple and user-friendly calculator that can be easily accessed. It can be availed from any device with an internet connection.

How does a PPF calculator work?

A PPF calculator typically requires inputting details like the investment amount, tenure, and interest rate. Based on these inputs, it calculates the maturity value. It also estimates the interest earned, tax benefits, and other relevant details.

Key features of a PPF calculator

Most PPF calculators offer a range of features to help you plan your investment better. Some key features include:

  • Calculation of maturity value
  • Estimation of interest earned
  • Projection of account balance over the years
  • Calculation of tax savings
  • Comparison with other investment options

Benefits of using a PPF calculator

Using a PPF calculator offers several benefits to investors:

  • It helps you understand the potential growth of your investment over time.
  • It enables you to plan your contributions and withdrawals better.
  • This allows you to compare different investment scenarios and make informed decisions.
  • It provides a clear picture of the tax benefits you can avail of.
  • It is a quick and easy way to analyse your PPF investment without complex calculations.

Overall, a PPF calculator is a valuable tool that simplifies understanding and managing your PPF investment. It empowers you to make well-informed decisions and maximise the benefits of this popular investment scheme.

Steps to Use a PPF Calculator

  1.  To use a PPF calculator, we must provide basic details like the investment amount, tenure, and interest rate.
  2. Based on our inputs, the calculator will show you the projected maturity value of our PPF account.
  3. If we plan to make partial withdrawals, we can enter the withdrawal year and amount to see the impact on our maturity corpus.
  4. Many PPF calculators also show us the interest earned, tax savings, and year-wise account balance with just a few clicks.

Additional Considerations

If you plan to invest in stocks or mutual funds, you must open demat account online with a broker. Besides PPF, you can explore other tax-saving investments like ELSS, NPS, and insurance plans to diversify your portfolio.


In conclusion, the Public Provident Fund (PPF) offers a secure and tax-efficient investment avenue for long-term wealth creation. However, it’s essential to understand the rules and regulations governing withdrawals from your PPF account.

By utilising a PPF calculator, you can effectively plan your withdrawals, whether partial or complete and ensure you make the most of this investment opportunity.

Additionally, exploring options like open demat account online and considering other investment avenues can help you diversify your portfolio and achieve your financial goals more effectively.

With careful planning and adherence to the guidelines, PPF can be a valuable addition to your investment strategy.

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