The Public Provident Fund (PPF) is one of the most-favored long haul tax saving investment choices. Numerous individuals put resources into PPF as it offers nice returns alongside annual tax reductions. Be that as it may, the Department of Posts of the Ministry of Communication has as of late acquainted a few changes with procedural principles of the PPF plot.
Here are the 10 key changes in PPF extension rules that you need to know:
- Considering the lockdown limitations, the government has facilitated as far as possible for Public Provident Fund financial specialists or investors who need to expand their record. The endorsers PPF accounts – whose cutoff time for presenting the expansion structure is expected in lockdown with one-year effortlessness period after maturity – may present the recommended structure for augmentation through enrolled email id by 31st July, the postal office said.
- The first or initial copy of PPF expansion structure can be submitted to the concerned working office once the lock down is totally lifted, it included.
- PPF accounts gets matured in 15 years and they can be stretched out past 15 years in divisions of five years. They can be held with or without making further commitments. The corpus will procure keep on winning interest till the record is shut.
- In the event that PPF account holders need to proceed with the contribution mode after maturity, they should submit Form H inside one year from the date of mature perioy of the record. Something else, new deposits into PPF record won’t acquire any interest. Additionally, the new deposits in the PPF account won’t be qualified for finding under Section 80C of the Income Tax Act.
- On the off chance that PPF account holders don’t close the record or present the form after the account matures, no new contributions will be permitted however the balance will keep on gaining interest.
- Then, the Central Board of Direct Taxes (CBDT) through a notice additionally broadened as far as possible by a month till July 31, 2020, for making different investments for asserting findings under the I-T Act, which incorporates Section 80C (PPF, NSC and so forth), 80D (mediclaim), 80G (donations) and so on, for 2019-20.
- The administration has permitted PPF supporters of making deposits till 31st July in their accounts for FY 2019-20 subject to the state of most deposit roof of ₹1.5 lakh.
- A PPF account holder can apply for loan between 3rd to 6th monetary or financial year of opening a record. The government had decreased the rate of interest charged on loan taken against PPF balance to 1% over the predominant PPF rate from 2% prior.
- A PPF account holder needs to reimburse the loan before three years. Where the advance isn’t reimbursed or repaid or is reimbursed uniquely to some extent, the correctional or penal interest will be charged at the rate of 6% per annum, Department of Post said in the round.
- The government has likewise declared some relaxation in the qualification standards for opening of Sukanya Samriddhi accounts due to the coronavirus lockdown.
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