PPF deposit, extension: What to do before June 301 min read . Updated: 09 Jun 2020, 09:45 AM IST
- PPF account holders can make the deposit for FY 2019-20 till June 30 and no penalty/revival fee will be charged
- This is also applicable for other small savings schemes
Due to the coronavirus pandemic, the government had allowed Public Provident Fund (PPF) and Sukanya Samriddhi Account (SSA) holders a three-month extension to make deposits for FY 2019-20 till June 30, 2020. This is subject to maximum deposit ceiling of ₹1.5 lakh for FY 2019-20. Depositors have to give an undertaking that while making deposits into their respective accounts during the extended period, they will not breach the annual ceiling kept for the schemes.
And for this deposit made till June 30, March 31, 2020 will be considered for the purpose of payment of interest.
The government has also extended the date for making various investment and payments for claiming income tax deduction for 2019-20 to June 30. This includes Section 80C (which also includes investment in PPF), 80D (health insurance) and 80G (donations).
Also, non-deposit of mandated minimum deposit in PPF account for the year 2019-20 will not attract any penalty. PPF account holders can make the deposit till June 30 and no penalty/revival fee will be charged. This will also be applicable for other small savings schemes.
This relaxation on default fee is restricted only for FY20. The default fee will be charged if the account had remained inoperative in any previous years.
For the purpose of deciding withdrawal limit or loan, the balance in PPF and SSA on March 31 will be taken into account.
PPF subscribers, whose accounts matured on 31st March 2020 and could not extend their accounts due to lockdown, can extend up to June 30.
Last fiscal the government had also tweaked a few rules for the benefit of PPF account holders. These were mostly procedural in nature. Now an account holder can make deposits in multiples of ₹50 any number of times in a financial year, with a maximum of a combined deposit of ₹1.5 lakh a year. Earlier, a maximum of 12 deposits were permitted in a period of one year into a PPF account. The government had reduced the interest rate charged on loan taken against PPF balance to 1% above the prevailing PPF rate from 2% earlier.