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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Feb 10, 2024

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Surander Question by Surander on Jan 11, 2024Hindi
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ir I have opened PPF account in 1998 and thereafter continuous depositing the money . As on 01.04.2022( After25 Years) my corpus was 8.5 Lacs and did not know the time frame of extension and deposited 1.5 lacs April-23 . Suddenly i come to know that my account now has been extended till March -2028 . Now i need money becz of extreme emergency . Please guide the penalty clause of 1% reduction will be from 01.04.2023 (Date of extension ) or since the date of opening the account . Its premature closure but after 25 Years but before 30 years.

Ans: You will be allowed to withdraw 60% of the balance at the beginning of extended period (block of five years).
It means, let us say the account matured on 1st April 2023 and the available balance is Rs.8.5 Lakhs. Then, you are allowed to withdraw 60% of this Rs.8.5Lakhs during the block period of 5 years. This can be withdrawn either in a single withdrawal or in instalment each year. However, only one withdrawal is allowed in a financial year.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

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Sir I have opened PPF account in 1998 and thereafter continuous depositing the money . As on 01.04.2023( After25 Years) my corpus was 10 Lacs ( 8.5 earlier and 1.5 lacs current one) . Now i need money becz of emergency . Please guide the penelity of 1% reduction will be from 01.04.2023 (Date of extension ) or since the date of opening the account . Its premature closure but after 25 Years
Ans: The penalty for premature closure of a PPF account after 25 years is typically 1% reduction in the interest rate that would have been earned. This penalty is applied from the date of the extension, not from the date of opening the account.

Given your situation where you're facing an emergency and need to withdraw funds, it's important to understand that while PPF offers excellent tax benefits and compounding growth, it's also meant to be a long-term investment with a lock-in period of 15 years. Even after this period, partial withdrawals or loans are allowed under specific conditions, but the full withdrawal before maturity attracts the penalty.

In emergencies, it might be worth considering other available options before prematurely closing your PPF account, such as taking a loan against the PPF balance or exploring other liquid assets you might have. However, if you find that closing the PPF account is your only option, do factor in the penalty and tax implications to make an informed decision.

Always consult with a financial advisor or tax consultant to understand the implications fully and make the best choice for your situation.

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My son got 245 in bits .He can get any Brecht branch
Ans: Priyanka Madam, by now your son must have been allotted/not allotted any seat by BITS. Please update the status for today. However, please note, A BITSAT score of 245 situates you within the previous two years’ closing-score bands for core engineering streams at the Pilani, Goa, and Hyderabad campuses. At Pilani, the B.E. Chemical Engineering cutoff ranged from 224 in 2023 to 247 in 2024, placing your 245 close to the 2024 threshold and comfortably above 2023’s mark; B.E. Civil Engineering closed at 213 and 238, making admission highly probable; and B.E. Manufacturing Engineering cutoffs of 220 and 243 indicate a strong likelihood of allotment. At Goa, Chemical Engineering closed at 239 in 2024 and 248 in 2023, and Civil around – (not offered in 2024) – but Pilani-equivalent streams suggest safe admission; Manufacturing cutoffs mirror Pilani trends, bolstering your prospects. At Hyderabad, Chemical Engineering cutoffs of 238 and 209 over the two years ensure a secure allotment, while Civil Engineering’s 235–204 band similarly favors your score; Manufacturing at Hyderabad showed closing marks near 218–251, indicating moderate probability. Across campuses, Civil and Manufacturing remain reliably within reach, Chemical at Pilani may require waitlist movement but is feasible given historical fluctuations, and all three streams at Hyderabad and Goa present strong chances. Additional seats open during special iterations further enhance admit probabilities.

Recommendation: Considering consistent cutoff trends and seat matrices, prioritize B.E. Civil and Manufacturing Engineering at BITS Pilani for guaranteed allotment, consider Chemical Engineering at Pilani via waitlist movement, and secure Chemical, Civil, or Manufacturing Engineering at BITS Hyderabad or Goa for assured admission, capitalizing on slightly lower cutoffs and ample seat availability. All the BEST for a Prosperous Future!

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