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Government eases norms for PPF and Sukanya Samriddhi account holders due to COVID-19

NEW DELHI: The Finance Ministry on Saturday extended the deadline for mandatory minimum deposit in Public Provident Fund (PPF) and Sukanya Samriddhi Account (SSA) for 2019-20 by three months up to June 30 in view of the lockdown due to 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 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.

The account holders of the specified schemes will be eligible to make a single deposit each in the account or accounts opened in his own name or in the name of minors the case may be for 2019-20 till June subject to maximum deposit ceiling of prescribed by law, an office memorandum issued by the ministry said.

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.

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