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My father is having PPF account for the last 15 years, now he does not want to extend it for another 5 years. Can he withdraw the complete amount in one go? What will be the tax implications, if he would withdraw partly amount and keep some in the account?
Yes, Its up to you. Want to go in one go or in parts.Quote:
Originally Posted by Sahil
Withdrawal is taxable in the year of maturity/withdrawal.Quote:
What will be the tax implications, if he would withdraw partly amount and keep some in the account?
Thanks for reply. Can you give me how much I need to pay as tax, If the total amount is 150,000 and I would withdraw 20000 every year.Quote:
Originally Posted by >take
For example - You invest Rs 10,000 every year in PPF. After 15 years, you receive a lumpsum of approximately Rs 215,000 (Invested amount + interest). Every year, you are eligible for a deduction of Rs 10,000 from your income and thus save tax on it. When you withdraw the amount only the deposit of Rs 150,000 (Rs 10,000 x 15 years), will be taxable out of the total amount. Interest part is not taxable.