Providing big relief to the Public Provident Fund (PPF), Sukanya Samriddhi Yojana, and recurring deposit investors, the India Post department has announced extension of the time limit for ensuring minimum balance. Now, these small savings scheme account holders will not face penalty in case of delay in minimum balance deposit. The India Post Office has extended the minimum balance deadline to 30th June 2020.

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Generally, a PPF, Sukanya Yojna or recurring deposit account holder needs to ensure minimum deposit from 1st April to March 31st in a financial year. But, due to the Coronavirus lockdown imposed on 25th March 2020, some o the depositors were facing the penalty charges due to non-deposit of minimum amount in the respective PPF, Sukanya Samriddhi Yojana and recurring deposit accounts. Sensing, the problems of such investors, the India Post Office Department decided to extend the last date for submission of minimum deposit in PPF, Sukanya Yojana and RD accounts.

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As per the small saving scheme rules, a PPF account holder needs to deposit at least Rs 500 in its PPF account in a financial year failing to which there is provision of Rs 50 penalty on the PPF account holdr. In the case of Sukanya Samriddhi Yojana account, the minimum deposit amount is Rs 250. In the case of RD default, post office charges Rs 1 on each Rs 100 default in RD account.

The Finance Ministry has already made it clear that those who are investing in these small saving schemes, can show these investments up to June 2020 in their Income Tax Return (ITR) for FY 2019-20.