The government extended the deadline for mandatory minimum deposit for FY20 in Public Provident Fund (PPF) and Sukanya Samriddhi Account (SSA) by three months. The Finance Ministry said on Saturday that the deadline has been extended up to June 30 due to the coronavirus lockdown. "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 the COVID-19 pandemic," said the ministry.
Subscribers of PPF and SSA who could not deposit their savings due to the lockdown can now do so till June 30. The ministry said that the account holders are eligible to make a single deposit in the accounts opened in their own names or in the name of minors.
The amount will be subject to the maximum deposit ceiling as prescribed by law. The depositor will also have to give an undertaking to the account office stating that the maximum deposit ceiling has not been breached.
Interest will be applicable from the actual date of deposits. No revival fee or penalty charges will be levied on PPF, SSA/RD accounts that failed to make the mandatory minimum deposit till March 31 if the deposit is made by June 30.
As for PPF subscribers whose accounts were to mature on March 31, including one year window for extension -- it can now be extended up to June 30.
Subscribers of PPF and SSA are required to make some specified deposit in a year to keep the accounts operational. Failing to pay the amount leads to a penalty. Usually, subscribers make a payment towards the end of fiscal as these schemes are part of 80C of the Income Tax Act.
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