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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 This can be withdrawn either in a single withdrawal or in instalment each year.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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Dr Nagarajan J S K   |1147 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Jun 21, 2025

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Hi I was alloted EE in rru . I am very confused about whether I should take the seat or not beacause they are calling for in person documents verification how is the hostel? Placements? Mess? Campus life ? Etc and I live in assam and wanted to know if its worth it Please guys reply as it is urgent since they are calling for admission within these 7 days
Ans: Hi Mega,
Please understand that based solely on your application, they have requested you to bring all your testimonials. Before applying, you should have asked the questions you mentioned. If you are not interested, someone else will benefit; if you are interested, please allow room for others.

If a stranger gives a wrong review, how will you handle that? Every person's experience is different. What is your goal—are you trying to match the course or not?

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DO PARTICIPATE IN THE YOGA CAMPAIGN.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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