Money & Banking

Finance Ministry relaxes norms for deposits in PPF, SSA and Post Office RD

Our Bureau New Delhi | Updated on April 12, 2020

PPF and SSA subscribers may now deposit their savings up to June 30

The Finance Ministry has released norms for deposit in Public Provident Fund (PPF) Sukanya Samriddhi Account (SSA) and Recurring Deposits (RD) of Post offices.

PPF and SSA are key instruments for tax saving under the Income Tax Act. One can deposit upto ₹1.50 lakh in all these tax saving instruments, and that amount is deducted from total income before the calculation of income tax.

The Government has already said that the money can be deposited in tax saving instruments for fiscal year 2019-20 till June 30.

Accordingly, it has been decided that the subscribers of PPF and SSA may now deposit their savings up to June 30, which couldn’t be deposited in FY 2019-20 due to lockdown in the country. Earlier the last date was March 31.

This decision has been taken to safeguard interests of small savings depositors in view of the lockdown in the country due to Covid-19 pandemic, the Ministry said.

It has also been said that there will not be revival fee/penalty charges on n the PPF, SSA/RD accounts in which mandatory minimum deposit in not made upto March 31 subject to such deposit are made up to June 30.

All those PPF subscribers, whose accounts were matured on March 31, 2020 (including one year window for extension), can now be extended up to June 30.

Published on April 12, 2020

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