If you are maintaining a PPF account, either as an investment avenue or to get Income Tax benefits, you should be aware of the fact that you are allowed to withdraw certain amounts from your account from time to time. However, the first withdrawal is only allowed once 5 years are passed (6 PPF deposits, considering you’re making only 1 deposit every year), called as the lock in period. From the 6 th year onwards, you are allowed to withdraw an amount that is not greater than 50% of the balance at the credit at the end of 4th year preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.
For example, considering that you deposit a maximum of Rs.70000 per year in the first five years, the maximum you can withdraw in the 6 th year is Rs.1,70,331 (50% of the amount deposited till the end of 4 th year, which is Rs.340662, including interest). Similar, you can withdraw (only) once every year.
To withdraw this amount, you have to submit a signed withdrawal request form to either Post Office of State Bank, where ever your PPF account is.
Download PPF Withdrawal form.