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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Jan 23, 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 09, 2024Hindi
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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: 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 This can be withdrawn either in a single withdrawal or in instalment each year.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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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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Relationships Expert, Mind Coach - Answered on Nov 07, 2024

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Anu Krishna  |1281 Answers  |Ask -

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Help me!!! 1.I'm starting new "work" on my own(challenging for me) but my mind says quit it, be quite & do nothing. I myself don't know that wether the result of work will be +ive or uncompleted like alws. 2. My mind has become like order seeker type, when someone orders me, I do those things with dedicated(but sad from inside) manner. But when myself will try something different(which i fear, but necessary) then. "I QUITS IT" & sometimes I don't even start. 3. I'm like stuck no clue what/whom I want to do in life, I'm in cllg(1 yr) doing (CSE) ,. 4. I want to do/try (sports,talking girls,study,stocks,coding..) many things, but myself, my thoughts(overthinker), R like just be in the place where u are[confused,po*n,think about past/future(being billio..re,olympics..), girl (that u liked & never talked), abusive/beating self,.. sometimes feels like end life, but don't hv courage for that also.. 5. I tried self help books, spirituality, god, self affirmation, writing... & thay affected me(sometimes) but for only some time, then again that devil me comes up &these things never get completed. As no one in my family knows about all these, so that's Y ,I hv to fight/loose/try again, the battles with myself.
Ans: Dear Harsh,
If in the past you have had the urge to QUIT, how is this time going to be different? This is not to discourage you from taking up 'new work' but pointing out that there is some amount of work that you need to put to clear the mind out of blockages.
-What is limiting you?
- What is the reason for putting off things?
- What comes first to the mind when you start something new?
Also, focus on one thing at a time; study and go deep into it...what's this thing with work? I don't understand. When the mind is unsettled, take one thing/activity, pursue it and finish it. It could simply be studying for Year 1 of your college...just only do that...once your mind is trained in completing an activity, you can add another one the next year along with studying and then pursue both...it could be some sport and studying...then the next year, you could add a third activity. This is called 'training the mind in discipline'. Discipline will make sure that you start and finish things...So, go slow and do one thing at a time.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

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