Have more than one PPF account? Thick lime is about to appear, the accounts will be closed like this

PPF News Alert: You can get income tax exemption on investment in Public Provident Fund. According to the rules of PPF, no person can open more than one PPF account, but sometimes people unknowingly get two accounts opened.

Getting 7.1% return on PPF

PPF Rule: People of the salaried class prefer investing in Public Provident Fund (PPF) to save tax. However, PPF account holders should pay attention to a new development related to it. It is a development that if one has two or more PPF accounts on or after December 12, 2019, then they will be closed and they will not be given any interest for this period. Such PPF accounts also cannot be merged.

Unable to send proposal for merging accounts

The Department of Economic Affairs (Budget Division) of the Ministry of Finance has directed not to send any proposal to merge PPF accounts. The Department of Posts has said in the latest circular that two or more PPF accounts opened on or after 12.12.2019 will be closed and no interest will be paid on these accounts and no proposal to merge such PPF accounts will be made by the Postal Directorate. should not be sent.

what are the rules

The rules of Public Provident Fund (PPF) Scheme say that no person can open more than one PPF account. However, despite this, many people unknowingly open more than one account.

The decision will have this effect

Suppose a person got a PPF account opened in June 2015 and got another account opened in February 2020. In such a situation, both the accounts cannot be merged and the account opened in February 2020 will be closed. You will not get any interest on the amount invested in it.

On the other hand, if you had opened an account in January 2015 and got another account opened in June 2018, then you can merge these two accounts by sending a request.

PPF Scheme is quite popular

This scheme is very popular among the salaried class. Up to 1.5 lakh rupees can be invested in this scheme in a year. By investing in this scheme, you get the benefit of tax exemption under section 80C. Currently, investing in PPF gives an interest of 7.1 percent.