PPF Account Latest Guidelines
Public Provident Fund (PPF): As per the latest guidelines, it is said that in the PPF accounts, for the words “or the date of extension of the account”, the words “or from the date of commencement of the current block period of five years” shall be substituted. The interest rate for the PPF account is kept at 7.4% for Q3 of FY24, unchanged from the previous quarter. PPF is among the most popular and top retirement tax benefits saving schemes available in India. A PPF account can be opened with a minimum of Rs 500 to a maximum of Rs 1.5 lakh in a year, either lump-sum or in instalments. Deposits here qualify for a tax deduction of up to Rs 1.5 lakh under section 80C of the Income Tax Act. The account also offers a loan/withdrawal facility that is not available on discontinued accounts. The interest rates are compounded annually. National Savings Time Deposit Scheme: Further, amendments were made to this scheme as well. Here’s what they are: – no deposit shall be withdrawn before the expiry of six months from the date of deposit. – where a deposit in a one-year, two-year or three-year account is withdrawn prematurely after six months, but before the expiry of one year from the date of deposit, interest shall be payable to the account holder at the rate applicable to the Post Office Savings Account for the completed months. – where a deposit in a two-year or three-year account is withdrawn prematurely after the expiry of one year from the date of deposit, interest on such deposit shall be payable to the account holder for the completed years and months, commencing on the date of deposit and ending with the date of withdrawal, and such interest shall be calculated at the rate which shall be less by two per cent. points than the rate specified for a deposit of one year or two-year, as the case may be, and interest for the completed year shall be calculated on a quarterly compounding basis in accordance with the provisions, and for any part of a year, interest shall be payable as per the provisions. – where a deposit in a five-year account is withdrawn prematurely after four years from the date of opening of an account, interest shall be payable at the rate applicable to the Post Office Savings Account. – any interest already paid on the deposit shall be recovered from the amount of repayment of the deposit and the interest payable.