PPF Investment: Some time ago the government suddenly cut the interest rates of small savings schemes like Small Savings Schemes such as PPF, NSC, etc., but withdrew the deduction the next day stating it as a mistake.
New Delhi: PPF Investment: Some time ago the government suddenly cut the interest rates of small Savings Schemes like PPF, NSC, etc., but on the very next day, forget this and withdraw this deduction. Had taken. SBI also welcomed this decision of the government and said that right now we are going through a very difficult situation of epidemic.
Apart from this, SBI economists have also given some suggestions to the government regarding small savings schemes. SBI report says that it will benefit everyone. So let’s know what those suggestions are.
1. ‘PPF’s 15-year lock-in period to be reduced’
A suggestion has been made regarding PPF (Public Provident Fund) that the government should reduce the lock-in period of 15 years of PPF. Also, investors should be allowed to withdraw their money within a set period. For this, the option to cut investors’ incentives can be discussed. An annual investment of Rs 1.5 lakh can be made in PPF. PPF gets the protection of the government. Its main purpose is to make the unorganized sector, the retirement of people doing their own business safe.
2. PPF, EPF interest rates to be equal
The SBI research has also suggested the central government to bring the parity in interest rates of the Employee Provident Fund (EPF) and Public Provident Fund (PPF). The report said that the interest rates of EPF and PPF should be equal, so that people are encouraged to save more and more. However, this demand has already been made.
3. Tax exemption on interest of Senior Citizen Savings Scheme
One suggestion is for tax exemption on the interest of Senior Citizen Savings Scheme. The report says that the interest of Senior Citizen Savings Scheme is fully taxable. The SBI Ecowrap report stated that as of February 2020, the outstanding amount under these schemes was Rs 73,725 crore. If full tax exemption is given on this, then there will not be much impact on the government. Under the Senior Citizen Savings Scheme, senior citizens can deposit up to Rs 15 lakh, on which the interest is 7.4% per annum.
