Rules Change : Aadhaar, PPF, Sukanya Samriddhi Yojana

Aadhaar and PAN Card Applications

From October 1, the use of an Aadhaar enrollment ID will no longer be permitted for applying for a PAN card or filing Income Tax Returns. This change aims to combat the misuse and duplication of PAN cards.

Public Provident Fund (PPF) Changes

Multiple PPF accounts?

For individuals who hold multiple PPF accounts, the new rules clarify how interest will be calculated.

The primary account will continue to earn interest at the scheme rate as long as it remains within the yearly investment limit of Rs 1.5 lakh.

If the total balance across all accounts stays below this limit, any excess balance in a secondary account will be consolidated into the primary account.

However, if there is any remaining balance in the secondary account that exceeds this limit, it will be returned without earning any interest.

Importantly, any additional accounts beyond the primary and secondary will not accrue interest at all.

This change aims to discourage excessive account holdings while ensuring that investors can still benefit from their primary investments.

For example:

Say you have two accounts like A1 & A2. In A1 account you have deposited Rs. 1,10,000 and A2 Rs. 90,000 in one financial year.

As, the limit is set at 1,50,000. A person will earn interest on Rs. 1,10,000 from A1 account and Rs. 40,000 from A2 account .

For Minors PPF Accounts

PPF (Public Provident Fund) accounts or Post-Office Savings Account (PoSA) for minors until they turn 18 interest rate will be 4% p.a.

Maturity period will start if the minor reaches the age of 18.

When the minor reaches 18 years of age applicable standard PPF rate will be 7.1% (as per the current rate).

Sukanya Samriddhi Yojana Rules

From October 1, the rules of the Sukanya Samriddhi Yojana scheme for daughters will also be updated. According to the new rules, if an account is opened by grandparents, it will be transferred to the guardian or biological parents. Additionally, if more than two accounts are opened, any extra accounts will be closed.

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