Gayatri N (student) (138 Points)
26 May 2015Do we have the option of closing the PPF Account if so whether the proceeds are taxable?
Actually i have heard that it is not permissible for us to close the account prior to 15 years lock in period then if withdrawn 50% after seven years then whether it is taxable and what all portion is taxable whether the principal amount or interest amount?
And if at all i have to transfer the same to my NRI Account then what is the procedure.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 26 May 2015
As I understand, it cannot be transferred to anybody else. Even in the event of death, nominee cannot continue in this account.
Pre-mature closure can be done only in case of death in which case proceeds are not taxable.
For more details about withdrawal: https://finotax.com/ppf/account
Gayatri N
(student)
(138 Points)
Replied 28 May 2015
If at all it is removed after 15 years then it is not taxable right
CAclubindia
