To give some relief to small savings account holders, FY 2019-20 deposit in PPF and SSY extended up to 30th June 2020.
Earlier when the last date for claiming deductions under Sec.80C was extended (FY 2019-20 extended up to 30th June 2020 for investment – How to do tax saving?), there was confusion whether the features of PPF and SSY was also tweaked or not. However, Government today announced these changes to PPF, SSY, and RDs of Post Office.
FY 2019-20 deposit in PPF and SSY extended up to 30th June 2020
Let us see the changes one by one.
# The subscribers of PPF and SSA may now deposit their savings up to 30th June 2020, which couldn’t be deposited in FY 2019-20 due to lockdown in the country.
# The revival fee/ penalty charges are waived off on the PPF, SSA/ RD accounts in which mandatory minimum deposit if not made up to 31st March 2020 subject to such deposit are made up to 30th June 2020.
# All those PPF subscribers, whose accounts were matured on 31.03.2020 (including one year window for extension), can now be extended up to 30.06.2020.
# You are allowed to do the single deposit for FY 2019-20 during the period of 1st April 2020 to 30th June 2020.
# To avail of this facility, you have to first give in writing to Post Office/Bank that you are not breaching the maximum limit (Rs.1,50,000) for FY 2019-20. Also, if later it is found that you breached the maximum limit, then your money will be returned back without any interest on it.
# The deposit will earn the interest from the date of deposit as it is applicable on that day of deposit.
# If you have not deposited any minimum balance in PPF and SSY and you wish to deposit the minimum balance or more than that (up to the maximum limit), then there will not be any default charge for FY 2019-20.
# For the purpose of loan and advance, the balance as on 31st March 2020 itself considered. Hence, this balance will not form the part of the eligible amount for loans and advance.
# The maximum and minimum limit for both PPF and SSY for FY 2020-21 will continue as usual.
# If your PPF account matured on 31st March 2020 and you are not able to extend may now extend the same after submitting the request before 30th June 2020.
Conclusion:-It is a good move by the Government to provide such a breather for the investors of PPF and SSY. But make sure that you follow the above rules properly before blindly investing.
Do remember that the interest rate of the last FY will not be applicable even though you are depositing for FY 2019-20. Hence, don’t think that you will get higher interest rates of last FY then the current lower interest on PPF and SSY.
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