Govt sets terms for premature PPF withdrawal

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New Delhi | Updated: June 27, 2016 1:46 PM

The Finance Ministry today said subscribers of the Public Provident Fund (PPF) can prematurely close the deposit scheme after completing five years for reasons such as higher education or expenditure towards medical treatment.

Budget 2016, union Budget 2016, union budget, tax exemptions, tax exemptions, tax exemptions budget 2016, union budget, union budget 2016, nps, National Pension Scheme, nps budget 2016, tax exemptions budget 2016The notification said that such premature closure shall be allowed only after the account has completed five financial years. (PTI)

The Finance Ministry today said subscribers of the Public Provident Fund (PPF) can prematurely close the deposit scheme after completing five years for reasons such as 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 a notification.

Also Read: Financial planning for FY17: PPF, insurance and early tax-saving moves a must

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 recognised institution in India or abroad.

It, however, added that such premature closure shall be allowed only after the account has completed five financial years.

 https://youtu.be/_aCs5CfDT_Y

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