The PPF interest is calculated monthly for the lowest balance between 5th and the end of the month. So keep in mind to deposit before 5th of the month which you wish to deposit to avail the interest for the month.
If you withdraw after 5th and deposit same, so in technical terms the amount with be less for a while and it will be taken as lowest amount for calculation of interest.
Whether I will be allowed tax benefit for the amount withdrawn and deposited on the same day as deposit?
Yes, you can take benefit on all the deposited amount for that financial year. Even if you withdraw all.