Small Saving Scheme: Big decision of Central Government, changes made in these schemes including PPF and SCSS, know details
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Small Saving Scheme: The Central Government has given a big Diwali gift to the common people. Public Provident Fund by the Government (ppf), Senior Citizens Savings Scheme (SCSS) has given relaxation in investment rules in many government small savings scheme schemes. Earlier, the government used to give one month time to open an account under the Senior Citizen Savings Scheme. Now you will get three months time.
It has been said by the government that a person can open an account under the Senior Citizens Savings Scheme within three months from the date of receipt of retirement benefits and can provide proof of the date of disbursement of such retirement benefits. Whereas, in the case of PPF, the scheme has been named Public Provident Fund (Amendment) Scheme, 2023.
The government has said that if the amount deposited in a five-year account is prematurely withdrawn after four years from the date of account opening, interest will be payable at the rate applicable to post office savings account. This has provided some relief to those withdrawing pre-mature amount. As per the existing norms, if a five-year fixed deposit account is closed after four years from the date of deposit, the rate admissible for a three-year fixed deposit account will be applicable for calculation of interest.
The government said that the interest rates on small savings schemes for the October-December 2023 quarter will be like this. PPF- 7.1%, SCSS- 8.2%, Sukanya Yojana- 8.0%, NSC- 7.7%, PO- Monthly Income Scheme – 7.4%, Kisan Vikas Patra – 7.5%, 6.9% on 1-year deposit, 6.9% on 2-year deposit Interest of 7.0%, 7.0% on 3-year deposit, 7.5% on 5-year deposit and 6.7% on 5-year RD will be available on the investment amount.
Your investments in many schemes are eligible for tax benefits from Small Savings Scheme. These are generally deductions under various sections of the Income Tax Act. Some common eligible schemes are SCSS and PPF. You get benefit up to ₹ 1.5 lakh under Section 80C of the IT Act.
At present many small savings schemes are being run by the Central Government to encourage people to save. This includes Sukanya Samriddhi Yojana, Mahila Samman, Senior Citizen Saving Scheme for senior citizens, PPF, KYC and NSC schemes for long term investors, fixed deposit and RD schemes for short term investors.
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