PPF account: Public Provident Fund or PPF rules say that having more than one PPF account is illegal and one can't avail of any of the benefits in the second account. According to tax and investment experts, PPF investment falls under 'EEE' category, which  means one gets income tax benefits on the investment, interest earned and maturity amount. If someone opens two separate PPF accounts, then the investor won't qualify for the EEE benefits on the second PPF account.

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Speaking on the PPF account rules and its income tax benefits, Manikaran Singhal, a SEBI registered tax and investment expert said, "According to the PPF account rules, one can't open more than one PPF account. Even grandparents can't open PPF account for their minor grandchild. In fact, only either of the parents can open a PPF account for the minor child." 

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Singhal said that PPF investors can avail income tax exemption on up to Rs 1.5 lakh investments while he or she is eligible to claim income tax benefit on the PPF account interest and PPF account maturity.

On the monetary loss that an individual who has two PPF accounts will have to face; SEBI registered tax and investment expert Jitendra Solanki said, "If someone has two separate PPF accounts, then he or she won't be eligible to claim EEE benefits on one's PPF investments. The investor won't get PPF account interest on one's second PPF account as well."

On what should be the ideal approach if someone has two PPF accounts, Solanki said that one has no option but to close the second PPF account. But, it's not that easy to close the second PPF account. 

Solanki said that one will have to first prove that he or she has mistakenly opened the second PPF account as PPF account rules clearly mention that one can't have more than one. On how to close the second PPF account,  Solanki said that one needs to approach the bank or post office where the second PPF account has been opened. If there is some PPF account interest credited, then the PPF investor will have to repay the PPF interest credited to one's PPF account and ask for its closure.

However, there is one more option that the PPF account holder can opt for. "PPF account holder can appeal to the Ministry of Finance to merge both of his or her PPF account but not before proving that the second PPF account has got opened mistakenly. However, the entire power is vested with the Ministry of Finance on whether to merge the two PPF accounts or decline the PPF accounts merger appeal," said Solanki.