New PPF Guidelines from October 2024: Shreya Jaiswal Explains It All

The Public Provident Fund (PPF) has long been one of the most popular savings tools in India, offering safe returns with tax benefits. However, the new guidelines set to take effect from 1st October 2024, may impact how you manage your PPF account—especially if you have opened accounts for minors. If you're wondering how these changes will affect you, Shreya Jaiswal has explained it all, read on to find out.

What Are the Key Changes in PPF Guidelines?

The government has introduced revised guidelines to address irregularities in PPF accounts, especially for minors. If your account falls into any of these categories, you may need to take corrective action:

Separate PPF Accounts for the Same Child by Both Parents

If both parents have opened individual PPF accounts for the same child, only one account is allowed per minor under the new rules.

Parents and Grandparents Opening PPF Accounts

Accounts opened by both parents and grandparents for the same child are no longer valid. Only one PPF account should be maintained.

Standalone and Joint PPF Accounts for the Same Minor

A child having both a standalone PPF account and a joint account with a parent will be considered irregular. The new regulations aim to streamline the number of accounts per minor.

Contribution Limits by Guardian

A guardian contributing ₹1.50 lakh to their PPF account and an additional ₹1.50 lakh to the minor's account exceeds the permissible limit. The total annual deposit across all accounts should not surpass ₹1.50 lakh.

Why These Changes Matter

The goal of these new regulations is to prevent misuse of the PPF scheme and ensure that families follow proper contribution and account limits. PPF accounts are designed to encourage savings while offering tax benefits, but these advantages come with strict rules. The new guidelines are intended to eliminate confusion and avoid scenarios where minors end up with multiple accounts.

What Actions Should You Take?

If you have an irregular PPF account, here's what you should do:

• Check your accounts: Ensure that only one PPF account is active per minor.
• Consolidate accounts: If you have multiple accounts for the same child, consider closing or merging them.
• Reassess your contributions: Make sure you do not exceed the ₹1.50 lakh contribution limit for both your account and the minor's combined account.

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The new guidelines effective from 1st October 2024 are designed to prevent the misuse of PPF accounts, particularly those opened for minors. To avoid any irregularities, review your accounts, consolidate where necessary, and make sure you're following the latest rules to maximize the benefits of your PPF investment.