Govt relaxes norms for PPF (Public Provident Fund), Senior Citizen's Savings Scheme, and time deposit account. Know here
PTI reported. Currently, the government offers nine types of small saving schemes. In the case of PPF, the notification has made some changes about the premature closure of accounts.
This scheme may be called the Public Provident Fund (Amendment) Scheme, 2023, the notification said. For the Senior Citizen's Savings Scheme, the new norms provide three months to open an account against one month at present. As per the gazette notification, an individual can open an account under the Senior Citizen's Savings Scheme within three months from the date of receipt of the retirement benefits and proof of the date of disbursal of such retirement benefits.
If a deposit in a five-year account is withdrawn prematurely after four years from the date of opening of the account, interest would be payable at the rate applicable to Post Office Savings Account, the notification said. As per the existing norms, if a five-year Time Deposit account is closed after four years from the date of deposit, a rate admissible for a three-year Time Deposit account would be applicable for the calculation of interest. For the October- December 2023 quarter, the interest rates on small savings schemes are as follows: PPF - 7.1% SCSS - 8.2% Sukanya Yojana - 8.0% NSC - 7.7% PO-Monthly Income Scheme - 7.4% Kisan Vikas Patra - 7.5% 1-Year Deposit - 6.9% 2-Year Deposit - 7.0% 3-Year Deposit - 7.0% 5-Year Deposit - 7.5% 5-Year RD - 6.7% Your investment in many of these schemes qualifies for tax benefits.
These are usually deductions under various sections of the Income Tax Act. Some common schemes eligible are the SCSS and PPF. You get benefits under Section 80C of the I-T Act, going up to ₹1.5 Lakh -With agency inputs Milestone Alert!
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