PPF Deposit Limit extended from 70000 to 1 Lakh and New NSC issued of 10 years.

The finance Ministry has been changed in Kisan Vikas Patra, National Saving Scheme as well as in Public Provident Fund. Time Deposit and Interest on loan from PPF. also changed. The details are as given below:

Rationalization of Schemes:

1. The maturity period for Monthly Income Scheme (MIS) and National Savings Certificate (NSC) will be reduced from 6 years to 5 years.
2. A new NSC instrument, with maturity period of 10 years, would be introduced.
3. Kisan Vikas Patras (KVPs) will be discontinued.
4. The annual ceiling on investment under Public Provident Fund (PPF) Scheme will be increased from ` 70,000 to ` 1 lakh.
5. Interest on loans obtained from PPF will be increased to 2% p.a. from existing 1% p.a.
6. Liquidity of Post Office Time Deposit (POTD) – 1, 2, 3 & 5 years – will be improved by allowing pre-mature withdrawal at a rate of interest 1% less than the time deposits of comparable maturity. For pre-mature withdrawals between 6-12 months of investment, Post Office Savings Account (POSA) rate of interest will be paid.
   

The Notification for implementation of all above will be issued separately and implemented from the dates to be specified in the Notifications. However, the committee decision note are attached herewith for complete study Click Here.

Posted in: PPF Interest,Saving of Income Tax Tips