Extension of PPF Deposit: What You Need To Know Before June 30Tue Jun 09 2020 / By: Rashmi
After the announcement of nation-wide lockdown, the government also allowed the extension of deposits such as Public Provident Fund (PPF) and Sukanya Samriddhi Account (SSA) holders.
When the extension of three months was announced, the deadline was March 31, 2020. But later, it was pushed till June 30, 2020, for the complete the tax-saving exercise for FY2019-20. And now with the date coming closer, people are a bit confused about what to do.
Here are five things you must know about PPF extension for FY20:
1. Even though you have passed the last final date i.e., 31st March 2020, you will not be charged with any penalty or revival fee if you make the PPF deposit till June 30. This is also applicable to other small savings schemes.
2. The default fee will be charged only if your account has remained inoperative before FY20.
3. Not just deposit, you can also extend their accounts, if they have matured on 31st March 2020.
4. Due to some changes in the rules in the last fiscal year, PPF account holders can now make deposits in the multiples of Rs. 50 any number of times in a financial year, with a maximum of a combined deposit of Rs. 1.5 lakh a year.
5. Now for the withdrawn limit and loan, the balance in PPF and SSY on March 31 will be taken into account instead of June 30.
Other Financial Deadlines
It was not just PFF and SSA holders who got the extension. The government has also extended the last date for various payments and extensions in the past two months.
Here are some of the money-related tasks you must complete along with your PPF deposit before June 30, 2020:
● Tax Saving Investments For FY20
For tax-saving investments, the government extended the last date to June 30, 2020, from March 31, 2020. So, if you have any investments eligible under section 80C, expenditure on health insurance premium eligible for deduction under section 80D, etc., start making it soon.
● Linking of PAN with Aadhaar
Earlier, the last date for linking your PAN card to Aadhaar was March 31, 2020. But due to the coronavirus lockdown, the Indian government decided to shift the date to June 30, 2020.
Now, if you do not link your PAN with Aadhaar before this deadline, it will become invalid. You will not be able to conduct financial transactions using your PAN.
● Income Tax Returns
Just like others, the government also extended the deadline for filing belated and revised ITRs for FY 2018-19 to June 30, 2020. If you miss it, you will have to pay a penalty for the same.
To get more tips and insights on banking and savings, keep reading BankingOnTips.