Srinivas posted the following question a few days ago:
Can an exclusive article be written on PPF?. Actually, there is lot of confusion on this, despite the popularity of the product . The question is ,whether one individual can open two accounts -one in his name and the other on the name of minor child- and contribute Rs.100000/- to each of the accounts? everybody talks about availability of tax exemption upto Rs.100000/-, but nobody explicitly conforms that contribution can be made to multiple accounts exceeding Rs100000 and claim tax exemption upto Rs1.0 lakhs only.
I think there are two questions here, and I’ll try to break this up and answer each one individually.
1. Can one person open more than one PPF account?
No, you can’t, you can only have one PPF account for yourself except if you want to open one as a guardian of your child.
2. If I can’t open multiple accounts then can I open one for my minor children as their guardian?
You can open another account for your minor children as their guardian but that doesn’t mean that the tax deduction doubles, that still remains applicable as an individual.
As far as I know, it doesn’t double the amount that you can put in these two accounts, so you can’t put Rs. 2 lakhs in the two PPF accounts, for the purpose of calculating the limit, they are treated as one account only. If someone knows this to be different then please leave a comment.
The husband and wife both can’t open an account on the name of the same child, and grandparents can’t open an account for their grandchildren.
Other than these two questions, I see that PPF has a thread on Jago Investor discussion forum and there they have dealt with some questions like how much this money will amount to after 15 years and that’s a good link for further reading.