New Rules For Savings Scheme: In view of the increasing interest of people in small savings schemes, the government has changed many rules. If you also want to invest money in these schemes, then know what changes have taken place.
Small Saving Schemes: The government has given relief to small investors by changing the rules of small saving schemes. For some time now, it has been continuously seen that people are investing a lot of money in Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS) and Time Deposit Scheme.
Therefore, the government has relaxed some rules by issuing a gazette notification. At present the government runs 9 types of small savings schemes. The management of these small savings schemes is done by the Department of Economic Affairs of the Finance Ministry.
New rules of PPF
The rules regarding premature closure of PPF accounts have been changed. According to the notification, this scheme has been called Public Provident Fund (Amendment) Scheme, 2023.
SCSS account can be opened for 3 months
Under the new rules, you will get 3 months time to open an account under Senior Citizens Savings Scheme (SCSS). At present this period is only for one month. According to the notification, a person can open a SCSS account within three months from the date of retirement. This gazette notification was issued on 9 November. According to this, interest will be given at the fixed rate for the scheme on the date of maturity or extended maturity.
National Savings Time Deposit Scheme also changed
According to the notification, the rules for premature withdrawal under the National Savings Time Deposit Scheme (NSTDS) have been changed. If the amount deposited in an account with a tenure of 5 years is prematurely withdrawn after 4 years from the date of account opening, interest will be payable at the rate applicable to Post Office Saving Scheme. According to the current rules, in the above situation, interest is given at fixed rate for 3 years savings account.
Tax saving on small savings scheme
On many of these schemes, you can get exemption of up to Rs 1.5 lakh under Section 80C of Income Tax. People are investing heavily in small savings schemes like Senior Citizen Savings Scheme and Mahila Samman Savings Certificate..
Investment in these schemes has reached record levels. Investment in these schemes increased 2.6 times compared to last year to Rs 74,675 crore. The government had increased the annual investment limit in these schemes to Rs 30 lakh.