Consider burying your money for nothing less than years, at least you can say it is growing slowly with no risk of loss and with tax benefits, but the thought of when you will be able to do so without incurring penalties constantly bothers you. The Public Provident Fund (PPF) gives a secure way to long-term wealth for the majority of Indian population. In 2025 with the rate of interest being the same at 7.1% the tax exemption being fully effective, it is essential to figure out the current withdrawal rules to enjoy the maximum returns on your investment.
Maturity Withdrawal Full Access After 15 Years
The primary attraction of the PPF scheme is the 15-year mandatory lock-in period. After it is over, you are totally free.
You can take out all the money, both the principal amount and the earned interest, tax-free. The money can be withdrawn with no restrictions. A lot of people do this for their retirement or major purchases.
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Or choose to keep the account open for another five years. You will be paid tax-free interest while enjoying the flexibility in your investments.
Extension Options Continue Growing Your Corpus
Post-maturity extensions allow you to make wise decisions based on your requirements.
You can extend it along with new deposits, meaning you can continue to pay up to ₹1.5 lakh per year and still be able to avail of the Section 80C deduction.
Partial Withdrawal: Liquidity Before Maturity
Do you require amounts earlier than expected? Partial withdrawals offer a way out without entirely closing the account.
The right to withdraw partially starts from the 7th financial year. For instance, if an account is opened in 2020, the person can make the first withdrawal in the year 2026-27.
| Withdrawal Type | Eligibility Period | Maximum Amount | Frequency | Tax Implication |
|---|---|---|---|---|
| Partial | From 7th financial year | 50% of eligible balance | One per year | Tax-free |
| Full at Maturity | After 15 years | 100% of balance | One-time or extend | Tax-free |
| During Extension (no deposits) | Post-maturity extension | Up to 60% of start balance | One per year | Tax-free |
| Premature Closure | After 5 years (exceptions) | Full balance (with penalty) | One-time | Tax-free but reduced interest |
Key Tips for Smooth Withdrawals in 2025
The process has become less complicated because one can now claim through banks or post offices digitally. For partial requests, use Form C.
No tax is charged on all withdrawals, interests, and maturity proceeds, which is the biggest advantage of PPF.
