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“Relaxation of provisions for Account holders of PPF, Sukanya Samriddhi Account (SSA) and RDs (recurring deposits). Govt has taken the decision to safeguard interests of small savings depositors in view of the lockdown in the country due to #Covid19 Pandemic,” the Finance Ministry said in a tweet.
To keep these accounts active the subscribers are required to make some specified deposit in a year otherwise penalty is charged over that. Usually, subscribers make a payment towards the end of fiscal as these schemes are part of 80C of the Income Tax Act.
The subscribers of PPF and SSA may now deposit their savings up to June 30, which couldn’t be deposited in 2019-20 due to lockdown in the country, it said.
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For this purpose, it said, the subscriber will have to give an undertaking to the account office that the maximum deposit ceiling applicable to PPF, SSA opened has not breached the deposit ceiling for 2019-20.
However, it said, interest will be applicable from the actual date of deposits.
It further said that the revival fee/ penalty charges are waived on the PPF, SSA/ RD accounts in which mandatory minimum deposit is not made up to March 31 subject to such deposit are made up to June 30.
All those PPF subscribers, whose accounts were matured on March 31 including one year window for extension, can now be extended up to June 30, it added.
Last month, the ”Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020” extended the date for making various investment and payment for claiming deduction under Chapter-VIA-B of IT Act, which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), to June 30.