If more than one PPF account is opened, then second will be useless

Public Provident Fund (PPF) remains the preferred form of debt investment among investors. This is due to guaranteed returns and tax benefits. Although the regulations related to PPF accounts are strict and not followed, the account can be termed irregular.

If this happens, the account can be closed, the contracts entered can be returned and the interest payments can be stopped. We are discussing some of the situations where PPF accounts can be termed irregular.

Opening multiple accounts

According to PPF rules, there should be a single account in the name of a person. If someone has a PPF account in a bank, then he can not open the second account at the post office. Similarly, if the post office has a PPF account, the second account can not be opened in the bank. If 2 accounts have been opened by mistake, the second account will not be considered as a valid account and till the two accounts are not merged, interest will not be available. In this case, the request to join the account will be made from the Finance Ministry.

The PPF account can be opened only by the mother or father in the name of the minor. Both parents can not open separate accounts for the same minor.

More than 1.5 lakh contribution annually

If a person contributes more than 1.5 lakh rupees annually, the additional amount will be considered irregular contribution. There will be no interest on that and no tax benefit claim on section 80C can be settled on it. The bank will return the additional amount to the account holder without any interest.

Opening a joint account

PPF does not have the concept of a joint account. If the joint account is opened, then the Deposit Office can close it. The account holder can give details of the nominee, but the jointholder can not give it.

Subscription after maturity date

PPF account can be run indefinitely after 15 years tenor. If you want to keep your account open and you want to deposit money in it, then the bank has to give this information within a year of the maturity. You must give this information in writing to Form H in writing. If the deposit is continued without giving information to the bank, the entire deposit after maturity will be considered irregular and you will not get interest on it. Besides, in this case, you will not be able to get Tax Benefit under Section 80C.