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  • Category: Miscellaneous

    Important-Central Government allows premature withdrawal from PPF

    The Finance Ministry has recently notified that the subscribers of the Public Provident Fund (PPF) can prematurely close the deposit scheme after completing five years for reasons like higher education or expenditure towards medical treatment. "A subscriber shall be allowed premature closure of his account or account of a minor of whom he is the guardian on ground that amount is required for treatment of 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 this important Notification.

    The Notification further said the allowance will be applicable to the requirement of higher education of the account holder or the minor account holder on production of documents and fee bills in confirmation of admission in a recognized institution in India or abroad.

    It has however been clarified that such premature closure shall be allowed only after the PPF account completes at least five financial years.
  • #568495
    Well instead of putting a rider, the government must have given withdraw of premature PF account by the employees when ever they are in need of money. Most of the PF accounts are not properly maintained, and hence with particular raider of beneficial, it is not going to serve the purpose. For example many schools are deducting the provident fund from the salary and they are not giving proper account statement to the teachers. When seen on the on line details, the first two years of provident fund collections made and deposited to the organizations was not found. So PF accounts must be more transparent and withdraw must be more liberal.
    K Mohan
    I consider myself as the learner everyday

  • #568529
    The duration of the PPF scheme is 15 years and thereafter an extension of one more block of 5 years is allowed. However pre-mature withdrawals were allowed even earlier from the end of the sixth financial year and maximum withdrawal of up to 50% of the amount was permissible.
    With the amendment of the Public Provident Fund Scheme, 1968 now the account holders can withdraw full money from their PPF account or close the account after completion of at least five years to pay for treatment of serious or life threatening diseases of the account holder, spouse or dependent children or parents or for the purpose of higher education of the account holder in cases of minor account holders.

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