The Public Provident Fund (PPF) is one of the most popular long-term investment alternatives available in India because of its sovereign guarantee, greater return, and tax benefits offered at all stages of investing
PPF investments of up to Rs 1.5 lakh per year are eligible for a tax deduction under Section 80C. The interest generated on a PPF account, as well as the maturity amount, are tax-free, making
PPF guidelines state that an individual cannot have more than one PPF account of their name. The second PPF account will not generate any interest since it is considered illegitimate and needs to be closed.
When a depositor opens more than one PPF account, the second and subsequent accounts are irregular, since, under the PPF Scheme, an individual can only create one account.
When an individual holds more than one PPF account with one or more operating agencies, orders are issued in relaxation of restrictions, for amalgamation of PPF subscribers’ accounts, and regularisation of irregular contributions by several departments.
When the deposits in both accounts total less than the statutory deposit ceiling, as applicable to the account from time to time, there will be a merger of these accounts. The account holder will be allowed to keep his preferred account. It is easy to combine PPF accounts under the same operating agency.
If any of the PPF accounts to be consolidated has an outstanding loan, the depositor must return the whole loan amount plus interest. Thus, if there is a PPF loan account, it must be closed before the accounts are amalgamated.
If the total amount of deposits in both accounts exceed the required deposit maximum (currently Rs 1.5 lakh), the excess money will be repaid to the subscriber from the account to be merged without interest.
If you need to relocate in the future, you should transfer your current PPF account from one bank branch to another or from one bank to another.
Also, It’s worth noting that a PPF account in a juvenile’s name is treated differently, and a parent can register a second minor account in addition to the self-named account