🏦 PPF Calc India

Partial Withdrawal

Partial withdrawal from PPF is allowed from the 7th financial year onwards, with the maximum amount being 50% of the balance from 4 years prior or the preceding year's balance, whichever is lower.

Detailed Explanation

## PPF Partial Withdrawal Rules From the 7th financial year of your PPF account, you can make one partial withdrawal per year. This provides some liquidity without closing the entire account. ## How Much Can You Withdraw? The maximum withdrawal amount is the lesser of: - 50% of the balance at the end of the 4th preceding financial year, OR - 50% of the balance at the end of the immediately preceding financial year **Example**: If you're in Year 10: - Balance at end of Year 6: Rs 9,50,000 - Balance at end of Year 9: Rs 15,00,000 - Maximum withdrawal: 50% of Rs 9,50,000 = Rs 4,75,000 You'll always use the smaller of the two amounts, which is usually the balance from 4 years ago. ## Tax on Withdrawals PPF partial withdrawals are completely tax-free. The EEE status applies to withdrawals during the tenure as well, not just at maturity. ## Impact on Your Maturity Amount Every rupee withdrawn is a rupee that stops compounding. A Rs 4 lakh withdrawal in Year 7 could reduce your maturity amount by Rs 5-6 lakh due to the 8 years of lost compounding. Think carefully before withdrawing. If you need funds, consider whether you have other sources first. Use our [PPF calculator](/) to model how withdrawals affect your final corpus. ## After Extension If you extend your PPF without contributions after 15 years, you can withdraw any amount at any time. The withdrawal restrictions only apply during the original 15-year tenure and during extension-with-contributions periods.

See it in practice

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Related Terms

PPF

Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India that offers tax-free returns at 7.1% per annum with a 15-year lock-in period.

EEE Status

EEE (Exempt-Exempt-Exempt) status means an investment is tax-free at all three stages: when you invest, while it earns returns, and when you withdraw at maturity.

Section 80C

Section 80C of the Income Tax Act allows Indian taxpayers to claim a deduction of up to Rs 1,50,000 per year from their taxable income by investing in specified instruments like PPF, ELSS, and tax-saver FDs.

Compound Interest

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods, causing your money to grow exponentially over time.

Maturity Amount

The maturity amount is the total sum you receive when a PPF account completes its full tenure, including all your deposits plus accumulated compound interest.

Lock-in Period

The lock-in period is the minimum time you must keep your investment before you can withdraw. PPF has a 15-year lock-in, though partial withdrawals are allowed from year 7.

Loan Against PPF

PPF account holders can take a loan against their PPF balance from the 3rd to 6th financial year, borrowing up to 25% of the balance from two years prior at an interest rate of PPF rate plus 1%.

PPF Extension

After the 15-year maturity, a PPF account can be extended in 5-year blocks either with continued contributions or without, allowing the corpus to keep earning tax-free interest.

Tax-Free Returns

Tax-free returns mean the gains from an investment are not subject to income tax, allowing you to keep the full amount earned without any deductions for taxes.

Risk-Free Investment

A risk-free investment is one where your principal and returns are guaranteed, typically backed by a sovereign government. PPF is considered risk-free because it carries a Government of India guarantee.

PPF Account

A PPF account is a savings account opened under the Public Provident Fund scheme at designated banks or post offices, where deposits earn 7.1% annual interest with tax benefits under Section 80C.

Annual Deposit

The annual deposit in PPF refers to the total amount contributed to a PPF account in a financial year, with a minimum of Rs 500 and a maximum of Rs 1,50,000.

Interest Rate

The PPF interest rate is the annual rate at which your PPF balance earns returns, currently set at 7.1% per annum and revised quarterly by the Government of India based on government bond yields.

Sovereign Guarantee

A sovereign guarantee means the Government of India stands behind the PPF scheme, ensuring that both your principal and accumulated interest are fully protected regardless of economic conditions.