Govt issues guidelines for FY 19-20 investments in small savings under relaxed deadline of June 30

The finance ministry has issued guidelines for investments in Small Savings Schemes for FY 2019-20, the deadline for which was extended to June 30 from March 31, 2020 as a relief for Small Savings account holders across the country.

On April 1, Department of Revenue had extended the date to make investments/payments to claim deductions under Sections 80C, 80D to June 30 from March 31.

As per the fresh guidelines issued by the Ministry of Finance on April 11, “the subscribers of Public Provident Fund (PPF) and Sukanya Samridhi Accounts (SSA) may now deposit their savings upto 30th June, 2020, which couldn’t be deposited in FY 2019-20 due to lockdown in the country.”

Moreover, the revival fee/ penalty charges are waived of on the PPF, SSA/ RD accounts in which mandatory minimum deposit in not made upto 31st March, 2020 subject to such deposit are made up to 30th June, 2020.

The guidelines also noted that “All those PPF subscribers, whose accounts were matured on 31.03.2020 (including one year window for extension), can now be extended upto 30.06.2020.”

The fresh memorandum stresses that throughout the extended period PPF and SSA holders will be eligible to make a single deposit each in account (s) opened in his name and/or account(s) opened in the name of minors for FY 2019-20 till June 30, 2020 subject to the maximum deposit ceiling as prescribed in the PPF and SSA scheme provisions.

To ensure that the depositors do not extend the maximum deposit ceiling the depositors will have to provide an undertaking in this regard.

You can read the finance ministry’s release in this tweet:

(1/4) Relaxation of provisions for Account holders of PPF, Sukanya Samriddhi Account (SSA) and RD.
Govt has taken the decision to safeguard interests of small savings depositors in view of the lockdown in the country due to #Covid19 Pandemic.#IndiaFightsCorona
For details: ⬇️ pic.twitter.com/4zxXXt15lc

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— Ministry of Finance