PPF Withdrawal Rules: Guide to Partial, Premature and Closure After 15 Years

By CA Mohammed S Chokhawala

|

Updated on: Aug 22nd, 2025

|

2 min read

The Public Provident Fund (PPF) is one of India’s most trusted long-term savings schemes, offering attractive interest rates and tax benefits under Section 80C. It's commonly used for retirement planning, funding education, or saving for a home. However, many account holders are unsure about the PPF withdrawal rules, especially regarding partial withdrawals, premature closure, and withdrawals after the 15-year lock-in period.

This guide covers PPF withdrawal rules, including partial withdrawals, premature withdrawals, and withdrawals after 15 years. 

Key Highlights

The Public Provident Fund withdrawal rules are as follows.

  • Partial Withdrawal: Eligibility after 5 years, limit of 50% of the balance (as per rules), no penalty.
  • Premature Withdrawal: Eligibility after 5 years (with a valid reason), full withdrawal allowed, 1% reduction in interest rate; conditions to be met.
  • Withdrawal After 15 Years: Eligibility upon maturity, full balance, no penalty, fully tax-exempt.
  • Withdrawal After Extension: Eligibility after extending for 5 years, up to 60% of the balance over 5 years, one withdrawal allowed per financial year.

What is PPF Lock-in Period?

A Public Provident Fund (PPF) account has a 15-year lock-in period, meaning the full balance cannot be withdrawn before then. After maturity, you can either withdraw the entire amount and close the account, extend it in 5-year blocks with fresh contributions, or extend it without contributions while continuing to earn interest.

What are PPF Withdrawal Rules?

The PPF withdrawal rules, set by the government of India, dictate when and how you can access your invested funds while encouraging long-term savings and retirement planning.

There are three basic kinds of PPF withdrawal rules:

  • Partial Withdrawal
  • Premature Closure 
  • Withdrawal After Maturity

PPF Partial Withdrawal

Partial withdrawal from a PPF account is possible when the account has been operational for at least 5 years. This option allows account users to retrieve a part of their invested money while keeping the account operational and enjoying the compounded interest advantages.

For Example: Suppose you created a PPF account in 2018 and have been making regular contributions. In 2023, after completing 5 years, you need finances for your child's further school fees. You may partly withdraw up to 50% of the amount in your PPF account at the end of the fourth year before the year the withdrawal is made.

If the amount in your PPF account at the end of 2021 (the fourth year before 2023) were ₹5,00,000, you would be allowed to withdraw up to ₹2,50,000 (50% of ₹5,00,000).

PPF Premature Closure

Premature withdrawal from a PPF account is authorised in specified conditions below:

  • Medical emergencies
  • Higher education fees or
  • Change in residency status. 

However, it is crucial to remember that early withdrawal may result in a penalty or loss of interest income. It is also important to note that premature withdrawal can be made only after 5 years. 

In case of early withdrawal, Interest in the account will be permitted at a rate 1% lower than the rate at which interest has been credited to the account since its opening or extension, whichever is applicable.

PPF Withdrawal After Maturity

After completing the 15-year term of a PPF account, you can withdraw money in the following ways:

  • You can make a full withdrawal and close your PPF account.
  • You can also extend your account in a block of 5 years. You can either extend and continue depositing money or can simply extend without making any deposits. 

PPF Withdrawal Rules After Extension

If you opt to prolong your PPF account for another 5 years after the first 15-year term, you can only withdraw 60% of the balance accumulated at the time of extension over the new 5-year period.

How to Withdraw PPF?

Follow the steps below to withdraw your PPF balance:

Step 1: Visit the bank or post office where you have a PPF account. 

Step 2: Fill out the applicable form with all relevant details.

Step 3: Make sure to provide all necessary documents.

Step 4: Once approved, the amount will be transferred to your bank account.

Tax on PPF Withdrawal

One of the key benefits of a PPF account is that all withdrawals are tax-free. Under Section 80C of the Income Tax Act, contributions qualify for tax deductions, while partial withdrawals, full withdrawals after 15 years, and the interest earned are completely exempt from tax, making PPF one of India’s best tax-saving investments.

Conclusion

The PPF offers a flexible and tax-efficient way to save for long-term goals like retirement, education, and home ownership. Understanding the various PPF withdrawal rules, including partial withdrawals, premature closure, and withdrawals after maturity, can help you make informed decisions about your funds. By adhering to these guidelines, you can maximize the benefits of your PPF account while securing your financial future.
 

Frequently Asked Questions

Can I withdraw 100% from PPF?

Yes, you may take 100% of the money from your PPF account after completing the 15-year term or when the account has matured. However, if you choose to withdraw the total amount prematurely (before completing 15 years), you may be liable to fine and loss of interest on income.

How much may I withdraw from PPF every year?

For partial withdrawals, you may take up to 50% of the amount in your PPF account of the balance at the end of the immediately preceding year.

What happens to PPF after 15 years?

After finishing the 15-year term, you have two options:

  • Withdraw the whole accrued sum without any fines or deductions.
  • Extend the account for another block of 5 years and continue enjoying the advantages of tax-free interest and compounding.
Is partial withdrawal from PPF allowed?

Yes, partial withdrawal from a PPF account is permissible when the account has been operational for at least 5 years. You may withdraw up to 50% of the qualified sum, subject to certain conditions. 

Can PPF be closed prematurely?

Yes, PPF accounts may be terminated prematurely, but depending on when the account has been operational, you may be liable to fines and loss of interest income.

Can I withdraw PPF after 15 years?

Yes, you may withdraw the whole accrued amount from your PPF account after completing the 15-year term or when the account has matured without any fines or charges.

Should I extend my PPF account after 15 years?

The choice to prolong your PPF account beyond 15 years depends on your financial objectives and investment horizon. Expanding the account might be a viable alternative if you have more assets to invest and prefer to continue enjoying the tax-free compounding advantages. However, you may withdraw the whole amount if you need the finances for other causes.

Can we withdraw PPF for a home loan?

You can withdraw your money from your PPF account for a home loan.

About the Author
author-img

CA Mohammed S Chokhawala

Content Writer
social icons

I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Office Address - Defmacro Software Private Limited, C 245A, Ground floor, Room No 1, Vikas Puri, West Delhi, New Delhi, Delhi 110018, India

Cleartax is a product by Defmacro Software Pvt. Ltd.

Privacy PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption