Government makes rules for PPF and Sukanya Samriddhi account holders due to Covid-19
NEW DELHI: The Finance Minister Saturday extended the deadline for the mandatory minimum deposit in Public () and (SSA) for 2019-20 by three months until June 30 in view of the closure due to the coronavirus outbreak.
"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 Minister said in a tweet.
To keep these accounts active, subscribers must make a specific deposit in one year; otherwise, a fine will be applied for it. Subscribers generally make a payment towards the end of the fiscal year as these schemes are part of 80C of the Income Tax Law.
PPF and SSA subscribers can now deposit their savings until June 30, which could not be deposited in 2019-20 due to the closure in the country, he said.
Account holders of the specified schemes will be eligible to make a single deposit each in the account or accounts opened in their own name or on behalf of minors, the case may be for 2019-20 until June subject to the prescribed maximum deposit limit by law, an office memo issued by the ministry said.
For this purpose, he said, the subscriber will have to agree with the accounts office that the maximum deposit limit applicable to PPF, open SSA, has not breached the deposit limit for 2019-20.
However, he said, the interest will be applicable from the actual date of the deposits.
In addition, he said that the surcharge/penalty charges do not apply to PPF, SSA/RD accounts in which the mandatory minimum deposit is not made until March 31, subject to said deposit until June 30.
All of those PPF subscribers, whose accounts expired on March 31, including a one-year extension period, can now be extended until June 30, he added.
Last month, the Tax and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 extended the date for making various investments and payments to claim the deduction under Chapter-VIA-B of the IT Law, which includes Section 80C (LIC, PPF, NSC, etc.), 80D (Mediclaim), 80G (Donations), until June 30.