Withdrawal from PPF permissible only after 5 years

I opened a PPF account in the State Bank of India in July 2005. So far, I have only contributed the amount annually and have not withdrawn any amount. Can I close this account prematurely? If yes, is there any deduction from the deposited amount? — Narender Singh

According to Clause 9 of the Public Provident Fund Scheme 1968, withdrawal from the Public Provident Fund is permissible any time after the expiry of five years from the end of the year in which the initial subscription was made to the extent of 50 per cent of the amount standing to the credit at the end of the 4th year immediately preceding the year of withdrawal or at the end of the previous year, whichever is lower.  The account can be closed after the expiry of 15 years from the end of the year in which the initial subscription was made.  According to the provisions of the said clause, you would, therefore, be able to close your account after a period of 15 years.

I am a pensioner and depositing Rs 2,000 per month to my granddaughter's Sunidhi Sukanya Account. Can I draw any deduction on such deposits? — DN Gupta

It seems the amount being paid by you is in the nature of premium for a policy taken in the name of your granddaughter. The amount of Rs 24,000 per annum paid by you is not deductible from the total income in accordance with the provisions of Section 80C of the Income Tax Act 1961. This section provides for deduction of premium paid in respect of policy taken in the name of spouse and children of the assessee. 

My disability pension was sanctioned on March 30, 2016, payable wef April 11, 2011, after I approached the AFT in April, 2014. Can I claim tax refund wef April, 2011? If yes, what is the procedure? — Col RS Dhaliwal

You can claim refund in respect of the assessment year 2015-16 only by filing a revised return for the said assessment year by March 31, 2017. With regard to earlier assessment years, you may file a petition before the Commissioner of Income Tax under Section 264 of the Act requesting for the modification of the assessment for assessment years 2011-12, 2012-13, 2013-14 and 2014-15. An application for condonation of delay, along with the aforesaid petition, should also be filed explaining reasons for the delay in filing the petition under Section 264 of the Act.