Latest news with #PublicProvidentFund
Time of India
2 days ago
- Business
- Time of India
ELSS funds: Go-to scheme for tax saving loses traction as new tax regime picks favour; Rs 1,600 crore outflows in Q1 FY26
Once a go-to choice for tax-saving investments, equity-linked savings schemes (ELSS) are slowly slipping off investors' radar. More taxpayers are pulling out of the ELSS as they are switching to a new tax regime, which provides no tax benefits under section 80C, according to an ET report. Data for the first quarter of FY26 reveals net outflows of Rs 1,616 crore from ELSS funds, indicating a drying up of fresh inflows and increasing withdrawals from investors whose three-year mandatory lock-in period has ended. Over the past 12 months, ELSS schemes managed a modest net inflow of Rs 535 crore, against the Rs 56,309 crore that poured into the flexicap category during the same period. "Many taxpayers have switched or are switching to the new tax regime, which is now very much attractive," Gautam Nayak, partner at CNK and Associates was quoted as saying. "Since there are no tax benefits available under Section 80C, these investors would not want to invest in ELSS schemes and lock in their investments for 3 years." Why did people prefer ELSS earlier? Traditionally, ELSS was favoured for offering a shorter lock-in compared to other tax-saving products like Public Provident Fund (PPF), National Savings Certificates (NSC), and five-year tax-saving fixed deposits. Being equity-oriented, it also offered superior returns. Under the old tax regime, investors could invest up to Rs 1.5 lakh annually in ELSS and claim deductions under Section 80C. But the appeal seems to be fading over time. Since the past year, ELSS has registered the slowest growth among equity funds, with assets under management (AUM) rising just 6.9%, from Rs 2.33 lakh crore to Rs 2.49 lakh crore. In contrast, total equity scheme AUM grew by nearly 22%, from Rs 26.82 lakh crore to Rs 32.69 lakh crore. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
2 days ago
- Business
- Business Standard
Post offices to freeze inactive accounts: Here's what customers must do
The postal department has begun a twice-yearly drive to freeze small savings accounts inactive for more than three years after maturity, aiming to protect depositors' funds and prevent unauthorised access. As a new practice, post offices will identify such accounts every January and July. If your account has matured but you haven't withdrawn the funds or extended the tenure within three years, it risks being frozen. Which accounts are impacted? The rule applies to all major small savings schemes, including: Time Deposits Monthly Income Scheme Public Provident Fund Senior Citizen Savings Scheme Kisan Vikas Patra National Savings Certificates Recurring Deposit Once frozen, no transactions, withdrawals, deposits, standing instructions or online services will be allowed until the account is reactivated. 'The process of identifying and freezing such accounts will be completed within 15 days, starting from 1 January and 1 July every year,' said the department in a circular dated July 15, 2025. How to unfreeze an account To regain access, account holders must visit a post office and submit a few key documents for verification. Here's what you need: -Passbook or certificate of the frozen account -KYC documents: Aadhaar, PAN and address proof -Account Closure Form (SB-7A) -Cancelled cheque or a copy of a bank/post office savings account passbook for crediting the maturity value Post office staff will verify your identity and signature before reactivating the account. Once cleared, the maturity proceeds will be credited to your linked savings account or bank account through electronic transfer. If you hold any small savings account, check its maturity date and act quickly to avoid disruption. Proactive closure or extension within three years of maturity ensures uninterrupted access to your funds.
News18
2 days ago
- Business
- News18
PPF: What Is This, Features, Interest Rates, Tax Applicability And How To Open
Last Updated: With the right approach, you can cut down on your taxable income and grow your savings. A Public Provident Fund (PPF) is a long-term savings scheme backed by the Indian government. It encourages small savings by offering stable returns and tax benefits. It is a popular choice for those seeking a safe, risk-free investment over time. What is the Public Provident Fund? PPF is a 15-year fixed-term savings plan introduced by the government, offering guaranteed returns that are not linked to market fluctuations. You deposit money in your account annually, either in a lump sum or in up to 12 instalments. The public provident fund is highly suited for conservative investors with long‑term goals. Public Provident Fund: Key Features – Long-Term Saving: PPF comes with a lock-in period of 15 years, which helps build long-term savings. – Fixed Interest: The government sets the interest rate, which is currently around 7.1 per cent per year (as of July 2024). – Tax Benefits: Money invested in PPF gives you tax savings under Section 80C, and the interest you earn is also tax-free. – Extension Option: Once the 15 years are over, you can keep the account going in 5-year blocks. Public Provident Fund: Interest Rate The government sets the PPF interest rate every three months. It is generally higher than what you get from regular savings accounts or fixed deposits, but lower than returns from tax-saving mutual funds like ELSS. Right now, the rate is 7.1 per cent per year, and it is compounded annually. This helps your money grow slowly but steadily, giving you a good amount by the time the account matures. Public Provident Fund: Tax Applicability Investing in a PPF account comes with great tax benefits, which is why many people prefer it. – Tax Savings: You can get a tax deduction of up to Rs 1.5 lakh per year under Section 80C when you invest in PPF. – No Tax on Interest: The interest you earn on your PPF savings is completely tax-free, so your returns are better. – Tax-Free Maturity: When your PPF account matures after 15 years, the entire amount you receive is also tax-free. How to Open a PPF Account Opening a PPF account is easy and can be done at any authorised bank or post office. Here's how: – Choose a Bank or Post Office: Pick where you want to open your PPF account. Most major banks and post offices offer this service. – Get the Form: Ask for the PPF account opening form or fill it out online if the bank allows. – Submit Documents: Provide proof of identity, address, and a passport-sized photo. – Deposit Money: Make an initial deposit of at least Rs 500. You can invest up to Rs 1.5 lakh in a financial year. – Get Your Passbook: After your account is opened, you will get a passbook with your account details. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
3 days ago
- Business
- Time of India
Small savings schemes: These post office savings accounts will be frozen after 3 years: Here is how to unfreeze your account
Which small savings accounts will be frozen? Academy Empower your mind, elevate your skills What happens to the account if it is frozen? How to unfreeze your small savings scheme account? The Department of Posts (DoP) has announced that it will freeze matured accounts under various small savings schemes accounts that have not been extended or closed even after three years from the date of maturity. Recently, it has issued an order to make account freezing a regular exercise to be conducted twice a year to identify such accounts to ensure safety and security of hard-earned money of savings schemes holders should note that their accounts will become frozen if not closed within three years of savings scheme accounts include Time Deposits (TD), Monthly Income Scheme (MIS), National Savings Certificates (NSC), Senior Citizen Savings Scheme (SCSS), Kisan Vikas Patra (KVP), National Savings Certificate (NSC), Recurring Deposit (RD), and Public Provident Fund (PPF) accounts, as per the a post office small savings account goes frozen after maturity, all transactions are suspended, including withdrawals, deposits, standing orders, and online per an order dated July 15, 2025, 'To further enhance security of hard-earned money of depositors, it has now been decided that this freezing activity will be conducted twice a year as a continuous cycle. The process of identification and freezing of such accounts will be completed within 15 days, commencing from July 1and January 1 of each year. This means accounts that complete three years of maturity as on 30th June and 31st December every year, respectively, will be identified and frozen.'Accountholders must reactivate or unfreeze their accounts by submitting the required documents to the concerned to the SB Order No.2512022 dated 16-12-2022, here is the process to activate inoperative more than 3 years, which already have been matured but not closed within 3 years and cut-off accountholder should visit any post office for closure and submit the following documents:a) Passbook or Certificate of the frozen accountb) KYC Documents such as mobile number, PAN card and Aadhaar or address proofc) Account Closure Form (SB-7A): Accountholder should also submit account closure form, passbook and details of post office savings account number or bank account details along with a cancel cheque/copy of passbook for credit of maturity value into his/her savings department will first check and confirm the details of depositor and tally signature to ensure genuineness of the account holder with relevant records. After verification of the genuineness of the case, the account/certificate concerned will unfreeze the maturity value will be credited either in the post office savings account or bank account of the accountholder through ECS outward credit.
News18
3 days ago
- Business
- News18
PPF To POMIS: 4 Effective Investment Schemes By India Post
Last Updated: Indian Post provides a range of investment alternatives to accommodate the demands of various investors. Besides being a network for letters and packages, India Post has been a reliable company for small savings and safe investments for decades. All post office savings plans are guaranteed to yield returns because they are backed by the Indian government. Moreover, Section 80C permits tax exemptions up to Rs 1,50,000 for most of the post office investment schemes. Continue reading to learn more about the Post Office's four investment programs, which include the Sukanya Samriddhi Yojana (SSY) and the Public Provident Fund (PPF). Public Provident Fund (PPF) With a 15-year investment period, the Public Provident Fund (PPF) is a long-term investment. The annual maximum investment is Rs 1.5 lakh, while the minimum is Rs 500. PPF provides a 7.10 per cent annual compound interest rate. A PPF account investment is eligible for a tax deduction under Section 80C of the Income Tax Act. Since its interest is completely tax-free, it also provides a tax-efficient return. National Savings Certificate (NSC) NSC is a risk-free and tax-efficient savings plan with a five-year maturity period for long-term and conventional investors without a risk appetite. The interest rate offered by NSC is 7.7 per cent annually, compounded every six months, and payable at maturity. The lowest amount of investment is Rs 1000, and there is no upper limit. You can invest in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000. The Sukanya Samriddhi Yojana, which is intended for girls aged 10 and under, can be initiated with a minimum investment of Rs 250 and a maximum investment of Rs 1.5 lakh annually. It provides a yearly compound interest rate of 8.2 per cent. Section 80C provides a tax deduction of up to Rs 1.5 lakh annually for investments made into SSY. Only the girl child's parents or legal guardians may open a Sukanya Samriddhi account in her name. Post Office Monthly Income Scheme (POMIS) A monthly income plan must be opened with a minimum of Rs 1000. A single account may hold up to Rs 9 lakh, while a joint account may hold up to Rs 15 lakh. The account holder is allowed to withdraw the deposit and end the account whenever they like, after a year from the date of opening. The Post Office MIS interest rate is now 7.4 per cent annually, payable on a monthly basis, and has a five-year maturity period. Visit the nearest Post Office branch to conveniently invest in a post office savings scheme. You can also invest online or offline with a variety of private and public sector banks in Post Office Savings schemes like Sukanya Samriddhi Yojana (SSY), Public Provident Fund (PPF), National Savings Certificate (NSC), etc. view comments First Published: July 17, 2025, 08:59 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
