Opening PPF or SSY account? Here is why you should HURRY up

Have you been planning to open a Public Provident Fund or Sukanya Samriddhi Yojana account for quite a few days? Then, you should hurry up. The government had given certain benefits and relaxations for deposit, extension and account opening rules for many small savings schemes including Public Provident Fund or PPF and Sukanya Samriddhi Yojana. 

These benefits were extended in the wake of coronavirus pandemic but will come to an end on July 31, unless there is another extension announced by the government. So, you should be looking to open the new account before the mentioned date.  

The government has allowed PPF subscribers to make deposits till July 31, 2020, in their accounts for FY 2019-20 subject to the condition of maximum deposit ceiling of Rs 1.5 lakh. Also, account holders whose deadline for submitting the extension form is due in lockdown with a one-year grace period after maturity, may submit the prescribed form for extension through registered email ID by 31st July. 

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The government had also announced some relaxation in the eligibility norms for opening of Sukanya Samriddhi Yojana accounts. As per the benefits extended, Sukanya Samriddhi Account can be opened in the name of the girl child on or before July 31, 2020, who have attained the age of 10 years during the period of lockdown from 25th March to 30th June 2020. 

This relaxation is aimed at helping guardians of girl children who could not open Sukanya Samriddhi accounts due to the lockdown. 

The investors were given another benefit as the income tax department has also extended the time limit for making investments for claiming deductions under the I-T Act till July 31, 2020. This includes investment made under Section 80C (PPF, NSC etc), 80D (mediclaim), 80G (donations) etc, for 2019-20.