Ppf withdrawal limit of non contributing account
Arvind S
(Querist) 22 February 2017
This query is : Resolved
Hi
I am a software professional currently self employed.
I started my PPF way back in 2000 for tax saving purposes with regular contributions to my PPF till 2015.
However in 2013 I got a good long term job opportunity in US and moved there with my family.
In 2015 my PPF completed 15 years and as I was not in India I made no contribution in that year.
As per PPF rules to continue membership after 15 years the PPF member needs to make a contribution withni 1 year of the maturity of the PPF scheme and if no contribution the member will not be able to continue to his PPF.
However interest will continue to be accrued.
Of late I wanted to withdraw part of the amount from my matured PPF but I was informed by my bank in which I have my PPF account that after maturity and post non contribution part withdrawals are not allowed hence I would have to withdraw the entire amount in one go.
My question to experts is:
1) Is there any such rule that restricts partial withdrawal post maturity of PPF and after non contribution.
2) If I so withdraw the amount will it be considered my income for a FY.
3) If I have to withdraw the entire amount can I move it to the bank account of my family member.
Please help.
Regards
Arvind
krishna mohan
(Expert) 23 February 2017
1) Is there any such rule that restricts partial withdrawal post maturity of PPF and after non contribution.
(Only your banker can confirm this ask them to show the rule for your right decision)
2) If I so withdraw the amount will it be considered my income for a FY.
(CA can advise you as now a days NPS on maturity if received on hand is taxable as added income for that year)
3) If I have to withdraw the entire amount can I move it to the bank account of my family member.
(You can gift but can not avoid tax if taxable)
Arvind S
(Querist) 23 February 2017
Any other learned experts who wish to suggest a different prespective
Rajendra K Goyal
(Expert) 24 February 2017
1. If you have not extended the term of PPF account after maturity, full amount has to be withdrawn. Can explore the possibility to continue after paying penalty and balance arrears of contribution of previous years and extend the time.
2. It would not be your income for that year, and would not be taxable.
3. Amount would be paid to you / in your Bank account / through cheque. You can further use it in any way you like.
