PPF Withdrawal Calculator India 2025
Calculate partial withdrawal, loan against PPF, and full withdrawal amounts with the latest 2025 rules. Check eligibility, limits, and tax implications for your Public Provident Fund account.
PPF Withdrawal Rules & Guidelines 2025
Complete guide to PPF withdrawal options with latest regulations
Partial Withdrawal
Loan Against PPF
Full Withdrawal
Key Points to Remember
Essential PPF withdrawal information
💡 Pro Tip
Plan your withdrawals strategically. Consider extending your account for continued tax-free growth, and only withdraw when absolutely necessary to maximize your returns.
How to Withdraw from PPF Account
Step-by-step process for different types of PPF withdrawals
Documents Required
Processing Time & Charges
PPF Account Extension Rules
Options available after 15-year maturity period
Extension with Contributions
Extension without Contributions
💡 Extension Pro Tips
You can extend your PPF account multiple times in 5-year blocks. Submit Form H within one year of maturity to continue contributions. Extension is automatic if no action is taken within one year.
PPF Withdrawal Calculator FAQs
Everything you need to know about PPF withdrawal rules, eligibility, and procedures
What is PPF withdrawal and when can I withdraw money from my PPF account?
PPF (Public Provident Fund) withdrawal refers to taking money out of your PPF account. There are three types of withdrawals allowed:
Partial Withdrawal
After completing 6 years, withdraw up to 50% of the 4th preceding year balance
Loan Against PPF
After 1 year, take loan up to 25% of the 2nd preceding year balance at 8.1% interest
Full Withdrawal
After 15 years maturity or premature after 5 years with 1% penalty on interest
What are the current PPF withdrawal rules for 2025?
The PPF withdrawal rules for 2025 include several important updates:
- Partial Withdrawal: After 6th year completion, maximum 50% of balance at end of 4th preceding year
- Withdrawal Frequency: Only one partial withdrawal per financial year allowed
- Loan Against PPF: Available from 2nd year, up to 25% of balance at end of 2nd preceding year
- Loan Interest Rate: Current rate is 8.1% per annum for 2025
- Loan Repayment: Must be repaid within 36 months
- Premature Withdrawal: After 5 years with 1% penalty on total interest earned
Important: These rules are subject to government notifications. Always verify current rules with your bank or post office before making withdrawals.
How much can I withdraw partially from my PPF account?
Partial withdrawal amount depends on your account balance and the specific year of withdrawal:
Calculation Formula
Maximum Withdrawal = 50% × Balance at end of 4th preceding year
For example: If withdrawing in 2025 (7th year), you can withdraw 50% of your balance at the end of 2021 (4th preceding year).
Example Calculation
• PPF balance at end of 4th preceding year: ₹2,00,000
• Maximum withdrawal allowed: ₹2,00,000 × 50% = ₹1,00,000
• You can withdraw up to ₹1,00,000 in this financial year
Important Restrictions
- Only one withdrawal per financial year allowed
- Minimum withdrawal may be subject to bank/post office policies
- Withdrawal reduces your total corpus and future interest earnings
What is the difference between PPF loan and partial withdrawal?
| Aspect | PPF Loan | Partial Withdrawal |
|---|---|---|
| Eligibility | After 1 year of account opening | After 6 years of account opening |
| Maximum Amount | 25% of 2nd preceding year balance | 50% of 4th preceding year balance |
| Interest | 8.1% p.a. on loan amount | No interest - it's your money |
| Repayment | Must repay within 36 months | No repayment required |
| Impact on Balance | Temporary - balance restored on repayment | Permanent reduction in corpus |
Recommendation: PPF loan is better for temporary financial needs as you can restore your balance. Partial withdrawal should be used only for permanent financial requirements.
What are the tax implications of PPF withdrawal?
PPF withdrawals have different tax treatments depending on the type and timing:
Tax-Free Withdrawals
- Partial withdrawal after 6 years - completely tax-free
- Full maturity amount after 15 years - completely tax-free
- PPF loan amount - not taxable (it's a loan, not income)
Taxable Scenarios
- Premature withdrawal (5-15 years): Interest portion taxable + 1% penalty on interest
- PPF loan interest payments: Not tax-deductible (unlike home loan interest)
EEE Status
PPF enjoys EEE (Exempt-Exempt-Exempt) status: Deposits are tax-deductible under Section 80C, interest earned is tax-free, and maturity proceeds are tax-free.
Can I extend my PPF account after 15 years and continue withdrawals?
Yes, you can extend your PPF account after 15 years maturity in two ways:
With Contributions
- Continue making annual deposits (₹500 to ₹1.5 lakh)
- Earn interest on entire balance
- Get tax deduction under Section 80C
- Can extend indefinitely in 5-year blocks
Without Contributions
- No new deposits required
- Existing balance continues to earn interest
- No tax deduction benefits
- Can extend indefinitely in 5-year blocks
Withdrawal During Extension
During extension period, you can make partial withdrawals of any amount once per year without restrictions. This makes extended PPF very flexible for retirement planning.
Strategy Tip: Extension with contributions is ideal if you haven't exhausted Section 80C limit. Extension without contributions works well for retirees who want tax-free returns with withdrawal flexibility.
How do I apply for PPF withdrawal and what documents are required?
PPF withdrawal process is straightforward but requires proper documentation:
Required Documents:
- PPF passbook
- Application form (Form 2 for partial withdrawal)
- Identity proof (Aadhaar/PAN)
- Address proof (if required)
- Bank account details for credit
- Signature verification
Application Process:
- Fill withdrawal application form
- Submit at your PPF bank/post office
- Bank verifies eligibility and amount
- Processing time: 7-15 working days
- Amount credited to registered bank account
- Updated balance reflected in passbook
Online vs Offline
Many banks now offer online PPF withdrawal applications through net banking. Post office PPF accounts typically require physical visit for withdrawal applications.
What happens if I don't meet the minimum contribution requirement after PPF withdrawal?
PPF accounts have minimum annual contribution requirements, and withdrawals can affect this:
Minimum Contribution Rule
You must contribute at least ₹500 per financial year to keep your PPF account active. If you fail to meet this requirement, your account becomes dormant.
Dormant Account Consequences
- No interest earned on the balance
- Account cannot be used for withdrawals or loans
- 15-year maturity period gets extended
- ₹50 penalty per year of default
Reactivation Process
To reactivate: Pay ₹500 for the current year + ₹50 penalty for each year of default. For example, if dormant for 3 years: Pay ₹500 + (₹50 × 3) = ₹650 to reactivate.
Important: Withdrawal doesn't affect minimum contribution requirement. You still need to deposit at least ₹500 annually regardless of withdrawals made.
Should I withdraw from PPF or continue saving for better returns?
The decision to withdraw from PPF depends on your financial goals and alternative investment options:
Continue PPF When:
- You want guaranteed tax-free returns (currently 7.1%)
- You have other sources for current financial needs
- You prefer conservative, low-risk investments
- You want to maximize long-term wealth with compounding
- You haven't exhausted Section 80C tax benefits
Consider Withdrawal When:
- You have urgent financial needs (medical, education, etc.)
- You can invest in higher-return opportunities (equity, business)
- You need funds for home down payment or EMI
- Your risk appetite allows for market-linked investments
Smart Strategy
Use PPF loan first for temporary needs (if eligible). For permanent needs, consider the opportunity cost: Can you earn more than 7.1% tax-free elsewhere? If not, avoid withdrawal and arrange funds through other means.
Expert Tip: PPF's tax-free returns of 7.1% are equivalent to about 10-12% taxable returns (depending on your tax bracket). This makes PPF very competitive even compared to equity investments.