What happens if I deposit more than ₹1.5 lakh in PPF in a year?

Investments
1

Hello, what happens if I deposit more than ₹1.5 lakh in PPF in a year?

2

I learned this once from my friend, so if you deposit more than Rs. 1.5 lakh in a financial year, the extra amount is called as excess contribution. It does not earn any interest and you cannot claim it as a tax deduction under Section 80C.

For fixing it, you need to withdraw the excess amount before the due date for filing your tax return, otherwise it will be treated as taxable income.

So, it’s important to keep track and not deposit more than Rs. 1.5 lakh in a year, even if you have the money available.