Month: April 2018

Are PPF Partial Withdrawals Taxable? All You Need To Know

Are PPF Partial Withdrawals Taxable? All You Need To Know

PPF or public provident fund is one of the most popular small savings schemes. For risk-averse investors, PPF is one of the most suitable schemes for savings towards retirement, say financial planners. PPF accounts have a maturity period of 15 years, which can be extended further. Apart from higher interest rates as compared to bank deposits, PPF contribution, interest earned and maturity proceeds are all tax-free. PPF contribution up to Rs. 1.5 lakh in a financial year is eligible for tax deductions under Section 80C of the Income Tax Act. Income Tax Treatment Of PPF Partial Withdrawal Partial withdrawals from PPF accounts are permissible every year from seventh financial year from the year of opening account, according to India Post website. If the PPF accounts are extended beyond th