PPF limit refers to the maximum and minimum amounts you can deposit or withdraw in a Public Provident Fund (PPF) account in India. It’s like setting rules for how much money you can save or take out each year to get benefits and follow government guidelines.
PPF Deposit Rules (Yearly Limits)
- Minimum deposit: ₹500 per financial year.
- Maximum deposit: ₹1.5 lakh per financial year.
- You can deposit in lump sum or split it throughout the year.
- Deposits must be made between April 1 and March 31 (financial year).
PPF Withdrawal Rules
Withdrawals before maturity (15 years) are allowed, but only from the 7th year onward. Here’s how they work:
| Year | Allowed Withdrawal Amount |
|---|---|
| 1–6 | ❌ No partial withdrawal allowed |
| 7th+ | ≤ 50% of balance at the end of the 5th year—or the previous year, whichever is lower |
| After 7th | One withdrawal per year until maturity |
Fully closing the PPF account is possible after 15 years, or 5 years after maturity, if extended in blocks of 5 years.
Sawing It with a Simple Example
- You deposit ₹1,00,000 every year.
- By the end of the 5th year, your account balance is ₹5,50,000.
- In the 7th year, you can withdraw up to ₹5,50,000 × 50% = ₹2,75,000.
Why These Limits Matter
- Discipline & savings habit: Minimum ₹500 prevents unused accounts.
- Tax benefit control: Contributions up to ₹1.5 lakh qualify under Section 80C deductions.
- Stability: Withdrawal rules ensure funds stay invested for long-term growth.
In simple terms: You need to save between ₹500 and ₹1.5 lakh each year in your PPF to enjoy tax benefits, and you can only start partial withdrawals from the 7th year onward, up to half of your earlier savings. It’s a smart, steady way to grow your money over time.
