PPF rule news Important news is coming for PPF account holders. Account holders who are running more than one account in their name.Â
They are going to suffer a big loss. The government is ready to take action against them.
If you invest in Public Private Fund (PPF), then this news is most important for you. Because your hard earned money has been invested in this and if its return is hit somewhere then imagine what will happen.
Therefore, it is important to know in detail about the new rules of PPF. Especially know the PPF rules of 2019. Not only this, the government has also warned investors about this rule.
The government has said that if an account holder is running more than one PPF scheme in the same name, then he is going to suffer a big loss. They will not get any interest. As per PPF Rules 2019, one account holder cannot have more than one account in his name. If the customer has opened two or more such accounts, the same will be closed without paying any interest.
According to TC Vijayan posted in the Ministry of Finance, PPF accounts opened in the same name after December 12, 2019, should be closed immediately. No interest will be paid on them. Also, it should be noted that no proposal is pending with the department regarding the merger of such accounts.
According to Personal Finance Expert and CA Manish Kumar Gupta, if someone has two accounts in the same name and has deposited Rs 1 lakh each in both the accounts, then under the PPF rule, he will not get interest on this amount. Explain that the interest rate on PPF is 7.1 percent. In this context, the account holder will not get interest for two years of about 28 thousand rupees.
What is PPF Scheme
Public Provident Fund (PPF) scheme is a long-term investment option, which offers attractive interest rates and returns on the amount invested. Interest and returns are tax free under Income Tax. Under this scheme, one has to open a PPF account and the amount deposited during a year gets tax exemption under section 80C. PPF was started in India in 1968.
Special things related to PPF
- The interest rate is 7.1% per annum.
- The minimum investment amount is Rs.500.
- The maximum investment amount is Rs 1.5 lakh per annum.
- The tenure is 15 years.
- The exemption under section 80C is up to Rs 1.5 lakh.
other important things
- PPF account is one of the best investment options for people with low risk appetite.
- PPF is a government backed scheme and investment is also not market linked. Due to this it provides guaranteed returns to protect the investment needs of many people.
- Since the returns from PPF accounts are fixed, they are used based on the portfolio of the investor. In addition, they also enjoy tax-saving benefits.
