A beneficiary can avail the feature of partial withdrawal only after the expiry of 5 years after the year in which the account was opened. It can withdraw up to 50% of the balance in the PPF account after the completion of the fourth financial year. There is no tax on this, and permission is there to do so only once every financial year. You cannot withdraw money twice in a financial year.
It is necessary to submit Form C to withdraw the partial amount from PPF account. Enter the information such as account number, amount of money to be withdrawn, etc. in the form. If the account is on the name of a minor, there should be an additional declaration stating that the amount is required for the use of a minor child, who is still a minor and is alive.
Pre-mature closure of account is not allowed within five years of opening the account. It can only be closed on fixed grounds such as life-threatening diseases, dependent children etc.
Process of withdrawing some amount from a PPF account:
Step-1: You are required to fill the Form-C. You can also get a hard copy of this form from your local bank branch.
Step-2: Fill your PPF account number and the amount you want to withdraw.
Step-3: Mention how many financial years have completed after opening PPF account.
Step-4: If the account holder is minor (you have opened it for your child) then you have to certify the form that the account holder is alive and minor.
Step-5: The concerned bank/post office branch will check your account opening date, balance in the account, final withdrawal date and allowed withdrawals as per PPF rules and will fill the relevant sections of the form.
Step-6: You can get that amount in your savings account, or even get it by a demand draft (dd). You need to mention it on the form, and paste a revenue stamp on the form and sign it.