PPF Account: Have more than one Public Provident Fund account? You can lose money – DO THIS
PPF account: Public Provident Fund or PPF is one of the safest and most attractive investment options, especially for the long term. However, you can end up losing money if more than one account is opened.
PPF account: Public Provident Fund or PPF is one of the safest and most attractive investment options, especially for the long term. However, you can end up losing money if more than one account is opened. According to PPF rules, having more than one PPF account is illegal and one can't avail of any of the benefits in the second account.
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.
Even grandparents can't open PPF account for their minor grandchild. In fact, only either of the parents can open a PPF account for minor child. PPF investors can avail income tax exemption on up to Rs 1.5 lakh investments while they are eligible to claim income tax benefit on the PPF account interest and PPF account maturity.
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What could be the loss?
If someone has two separate PPF accounts, then that investor won't be eligible to claim EEE benefits on one's PPF investments. The investor won't get PPF account interest on second PPF account as well. In such case, there is no other option but to close the second PPF account.
Even for this, investors will have to prove that they have mistakenly opened the second PPF account. To close account, investors need 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 investor will have to repay the PPF interest and ask for its closure.
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