What happens if you deposit more than 1.5 lakh in PPF?
However, an earning individual can’t have more than one PPF account and one can’t invest more than Rs 1.5 lakh in one PPF account in a particular financial year. … By doing this, one will be able to double one’s PPF investment cap to Rs 3 lakh.
Can I invest 2 lakh PPF?
PPF Deposit Limit
This means that you cannot invest more than Rs. 1.5 lakhs per year into a PPF account. The contribution can be done in any amount (subject to the overall minimum and maximum) and at any time in the year.
Can I invest 3 lakhs in PPF?
The annual limit for contribution to PPF be increased to Rs. 3 lakhs from the present ceiling of Rs. 1.5 lakhs.
What if I have two PPF accounts?
A person can not open more than one PPF account in his / her name, as per PPF regulations. In case you have two PPF accounts the second would be regarded as invalid since it is not authorized under the regulations. And because of its lock-in period of 15 years, you also can not close the second PPF account if any.
Which is better NPS or PPF?
When compared between the National Pension System and Public Provident Fund, NPS is the higher return vehicle for a portion of what you invest goes towards equity trading which signifies higher returns. PPF on the other hand is all about fixed returns and there is no scope for added frills.
Can I increase PPF amount?
If you extend this PPF account for the third time for another 5 years and continue investing Rs 1,000 then the total investment period will be 30 years. And the amount in the PPF account will increase to Rs 12.36 lakh. If you extend this PPF account after 30 years for 5 years and keep investing 1,000 rupees a month.
Can I withdraw PPF after 5 years?
You can withdraw money from your PPF account any time after completion of five complete financial years meaning you can withdraw money in the seventh running year of the account. For this purpose, you will have to approach the bank/post office where the account is opened and submit Form-2.
Is PPF tax free in 2021?
The tax on PPF interest in budget 2021 becomes redundant as the maximum limit for PPF contribution is Rs 1.5 lakh in a financial year. … If an employee’s contribution to EPF and VPF together exceeds Rs 2.5 lakh in a year, the interest earned on the excess amount will be taxable in the hands of the individual.