PPF investments for FY19-20: What you need to do before the extended deadline of June 30

The government had also extended the dates for claiming income tax deduction for 2019-20 to June 30 on making various investments and payments. This includes Section 80C- including investments in PPF, 80D for health insurance and 80G  for donations.

It is noteworthy that no penalty will apply on non-deposit of mandated minimum deposit in PPF account for FY 2019-20, as announced by the government.

Also Read: Reduction in small saving rates will boost RBI's efforts in COVID-19 battle

Till June 30, PPF account holders can make the deposit and penalty fee will not be levied on it. Other small savings schemes will also get benefits. 

If the account had not been operated in any previous years then the default fee will be applied. The relaxation on default fee is confined only for FY20.

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

The balance in PPF and SSA as of March 31 will be considered for the purpose of deciding withdrawal limit or loan. PPF subscribers, whose accounts matured on March 31, 2020 and could not extend their accounts due to lockdown, can extend up to June 30.

Follow our full coverage of the coronavirus pandemic here.