Rate Of Interest On Public Provident Fund Scheme Under Section 5 of the Public Provident Fund Act, 1968 (23 of 1968) On Subscriptions Made To The Fund On Or After 1-4-2014 And Balances At The Credit Of Subscriber
Notification No. GSR 496(E) [F.NO.6-1/2011-NS-II (PT.II)], Dated 11-7-2014
In pursuance of section 5 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government hereby notifies that the subscriptions made to the Fund on or after the 1st day of April, 2014 and the balances at the credit of the subscriber shall bear interest at the rate of 8.7 per cent.
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Mr.Narayanan: Please decide first weather you want to extend by 5 years or not. You can extend by 5 years or nil years. Give an application and continue to subscribe. If you dont want to extend give an application and close the account. Dont show this years contribution, i.e. after maturity of your account for relief u/s 80-C.
my PPF account matured on November 2001. as there was no specific instructions regarding extension was given in the guidelines printed in my passbook i continued to pay subscriptions(to save tax)till date without submitting application for extension. will my contributions earn interest and at what rate? when can i close my account?
pl give full notification reqarding ppf
This govt appears to be very keen to listen and learn than to feel they are there to tell and instruct and compel.
Large majority of the investors, be it PPF/GPF any any provident fund, are nil tax payers, as there income is below the taxable limit. This happens because contribution to provident fund is compulsory to an extent. While the tax payers with the existing tax exemptions to them, earn minimum 8.7% plus 10%/20%/30% having saved the income tax.
My suggestion is that govt should pay 8.7% plus 10% for those whose income is below taxable limit and pay nil percent to the tax payers to the extent they get tax exemption which works out to be 10%/20%/30% which is substantial.
IF the govt is willing there is a way to be saviours of the deserving. Like food which is of very high value to the hungry, money, however small it may be, is of great value (who are in the nil income tax bracket).
An innovative ideal Modiji may note. – See more at: https://taxguru.in/finance/ppf-interest-rate-chart-1952-2015.html#comment-1016705
Presently deposits into PPF accounts start earning interest only if the deposit is made before the fifth of the month. Deposits into Savings accounts start earning interest from the day the deposit is made.
It would be beneficial if similar rule is applied to PPF accounts as wellby removing the narrow time frame.