Finance : Learn about PPF for NRIs: eligibility, tax benefits, investment conditions, and common queries answered. Navigate the rules for se...
Income Tax : When it comes to tax-saving investments in India, there is no shortage of options. Among the most popular choices are the Tax-Savi...
Income Tax : Explore Public Provident Fund's benefits, history, eligibility, tax advantages, and more. Understand why PPF is a favored investme...
Income Tax : Discover top tax-saving investment strategies in India, including options like PPF, life insurance, mutual funds, and mediclaim po...
Income Tax : This article presents valuable tips that can assist you in saving income tax in the current financial year. From optimizing your s...
Finance : At present, premature closure of a Public Provident Fund (PPF) account is permitted on specified grounds on completion of five fin...
Finance : As per PPF Act, the PPF account can’t be closed prematurely before completion of five financial years. If depositor wants to clo...
Income Tax : Government has decided to effect a reduction of 0.1 percentage points in interest rates across the board in all Small Savings Sch...
Finance : The interest rates of Public Provident Fund (PPF), Kisan Vikas Patra (KVP), Senior Citizens Savings Scheme, 2004 (SCSS 2004), and ...
Income Tax : On the basis of the decision of the Government, interest rates for small savings schemes are to be notified on quarterly basis. Ac...
Service Tax : Read the case of State Bank of India vs Commissioner of Service Tax and importance of discretion in handling funds under PPF accou...
Finance : Public Provident Fund account shall not be liable to any attachment in respect of any debt or liability incurred by the account ho...
Corporate Law : Discover the latest interest rates for Small Savings Schemes for April-June and July-September 2024. Get detailed insights and com...
Finance : Read about the official memorandum from the Ministry of Finance on small savings schemes interest rates for the first quarter of F...
Finance : Explore SB Order No. 23/2023 issued by the Government of India, Ministry of Communications, on the revision of interest rates for ...
Finance : Get the latest update on small savings scheme interest rates in India. Revised rates for Q4 2023-24 released by the Ministry of Fi...
Corporate Law : Explore the impact of SB Order No. 22/2023 on Senior Citizen's Savings Scheme, National Savings Time Deposit Scheme, and Public Pr...
The maturity period for Monthly Income Scheme (MIS) and National Savings Certificate (NSC) will be reduced from 6 years to 5 years.A new NSC instrument, with maturity period of 10 years, would be introduced. Kisan Vikas Patras (KVPs) will be discontinued.The annual ceiling on investment under Public Provident Fund (PPF) Scheme will be increased from Rs. 70,000 to Rs. 1 lakh.Interest on loans obtained from PPF will be increased to 2% p.a. from existing 1% p.a.Liquidity of Post Office Time Deposit (POTD) – 1, 2, 3 & 5 years – will be improved by allowing pre-mature withdrawal at a rate of interest 1% less than the time deposits of comparable maturity. For pre-mature withdrawals between 6-12 months of investment, Post Office Savings Account (POSA) rate of interest will be paid.
Interest Rates on Small Savings Instruments (i) The rate of interest paid under Post Office Savings Account (POSA) will be increased from 3.5% to 4% p.a. (ii) The rate of interest on small savings schemes will be aligned with G-Sec rates of similar maturity, with a spread of 25 basis points (bps) with two exceptions. The spread on 10 year NSC (new instrument) will be 50 bps and on Senior Citizens Savings Scheme 100 bps. The interest rates for every financial year will be notified before 1st April of that year.
Commission to Post Office Agents- (i) Payment of commission on PPF schemes (1%) and Senior Citizens Savings Scheme (0.5%) will be discontinued. (ii) Agency commission under all other schemes (except MPKBY agents) will be reduced from existing 1% to 0.5%. (iii) Commission at existing rate of 4% will continue for Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) agents.
The RBI Committee has recommended increasing the deposit limit under PPF Scheme from existing Rs. 70,000 to Rs. 1 lakh per annum and fixing of rate of interest on advances against deposits in PPF scheme at 2 percentage points as against the prevailing interest rate on such advances at 1%.
Government of India has, vide their letter F.No.7/4/2008-NS.II dated June 1, 2011(copy enclosed), decided that interest at PPF rates would be paid on those PPF (HUF) accounts, which had attained the maturity after May 13, 2005 but closed by the subscribers before December 07, 2010, subject to the conditions that the accounts had not been extended thereafter and the deposits were retained in such accounts without further subscriptions.
The Committee, while conscious of the multiplicity of schemes, recognised that most of the schemes serve the thrift needs of various sections of the population, especially small savers. It has, therefore, recommended closure of only one existing scheme – the Kisan Vikas Patra (KVP) while recommending continuation of all other schemes with suitable modifications.
Committee for Comprehensive Review of NSSF Submits its Report to Union Finance Minister Recommends Discontinuation of Kisan Vikas Patra and Continuation of other Schemes with Suitable Modification(s); Recommends Reduction in the Maturity Period of Monthly Income Schemes and NSC. It also Recommends upward Revision of the Ceiling on Annual Subscription in PPF from Rs. 70,000 to Rs. 1 Lakh and Revision in Rate of Interest in Post Office Savings Account from 3.5% To 4% .
Some of the subscribers of PPF (HUF) accounts had closed the accounts on maturity or thereafter between 13th May, 2005 to 7.12.2010 (before the issue of the aforesaid amendment). Some of such account holders, were not paid interest at PPF rates on the deposits retained beyond the maturity period (without further subscriptions). Those subscribers had been representing that interest at PPF rate may also be paid to them on the deposits that were retained in PPF accounts beyond maturity period. The matter has been examined in this Ministry and it has been decided that interest at PPF rate would be paid on those PPF (HUF) accounts, which had attained the maturity after 13.5.2005 but closed by the subscribers before 7.12.2010,subject to the conditions that the accounts had not been extended thereafter and the deposits were retained in such accounts without further subscriptions.
The Government today said that PPF accounts of Hindu Undivided Families (HUFs) which were closed down between May 2005 and December 7 last year would get 8 per cent interest on the deposits. The Finance Ministry has issued the clarification in view of the doubts raised with regard to payment of interest on Public Provident Fund (PPF) accounts held by the HUFs beyond the maturity period.
Hindu undivided families (HUFs) will now have to mandatorily exit from the public provident fund (PPF) on completion of 15 years. The move is aimed at checking misuse as several people were investing in PPF to earn 8% tax-free return as an individual
