Many subscribers to savings schemes will not be able to make the minimum deposit in their small savings accounts due to the outbreak of COVID-19. A subscriber or account holder of a small savings account has to make a minimum deposit to keep the account running. A failure to make the minimum deposit also entails a penalty for the subscribers.
The government has extended the time for making small savings deposits until 30 June 2020. Many of the small savings schemes also qualify for tax deduction under section 80C of the Income Tax Act.
Small savings schemes such as Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY) and so on require a minimum subscription to keep the account running. The account holders of PPF and SSY schemes have to make a minimum deposit of Rs 500 and Rs 250 respectively.
The banks or post offices also levy a penalty for failure to make the minimum deposits. The government has also waived the penalty for failure due to the COVID-19 lockdown.
For any clarifications/feedback on the topic, please contact the writer at sweta.dugar@cleartax.in
I am a Chartered Accountant by profession. I specialise in personal taxes and corporate income tax matters. I am an avid reader and track developments in financial markets, economy and other market developments.
The systematic investment plan (SIP) contribution in February 2024 has crossed a new milestone. The monthly contribution tipped at Rs…
The Income-Tax (I-T) Department has directed taxpayers to access the Annual Information Statement (AIS) via the e-filing official portal and…
Considering the vagaries of the stock market, investors often ponder over reevaluating their strategies. Whether to continue to remain invested…
Financial planning is beyond just investing wisely to save on taxes; it's also related to protecting oneself and one's loved…
A salaried individual earning up to Rs 5-15 lakh as net salary on an annual basis must first take stock…
Equity-linked savings schemes (ELSS), also referred to as tax-saving schemes, are equity funds that invest a significant portion of their…