Pps Calendar 2024-2025

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The Public Provident Scheme (PPS) is a long-term investment scheme backed by the Government of India. It is designed to provide a safe and secure investment option to individuals and helps them accumulate funds for their future financial needs.

The PPS offers several benefits, including tax-free returns, long-term growth potential, and flexible investment options. To make the most of the PPS, it is important to have a clear understanding of the scheme and its rules.

This article provides a comprehensive overview of the PPS Calendar 2024-2025, including important dates and deadlines. By staying informed about the PPS Calendar, you can ensure that you are making the most of this investment option and maximizing your returns.

Pps Calendar 2024-2025

The PPS Calendar 2024-2025 includes important dates and deadlines that investors should be aware of. Here are 9 key points to remember:

April 1: Start of new financial year
April 15: Last date to invest for tax deduction in current financial year
March 31: End of financial year
April 1: Interest credited to PPS account
June 30: Last date to file income tax return
September 30: Last date to withdraw from PPS account without penalty
October 1: Penalty for premature withdrawal from PPS account
December 31: Last date to invest in PPS account for current financial year
March 31: Maturity date for PPS account

By staying informed about the PPS Calendar, you can ensure that you are making the most of this investment option and maximizing your returns.

April 1: Start of new financial year

The new financial year for the Public Provident Scheme (PPS) begins on April 1. This means that investors can start making fresh investments into their PPS account from this date. The new financial year also marks the beginning of a new investment cycle, which lasts for 15 years.

During the new financial year, investors can contribute up to a maximum of Rs. 1.5 lakh to their PPS account. This contribution limit is the same for all investors, regardless of their age or income. Investors can make their contributions in lump sum or in installments.

It is important to note that the interest earned on PPS investments is compounded annually. This means that the interest earned in one year is added to the principal amount, and the interest earned in the following year is calculated on the increased principal amount. As a result, the returns on PPS investments grow exponentially over time.

The PPS is a long-term investment scheme, and investors are encouraged to stay invested for the full 15-year period. However, investors can withdraw their funds prematurely if they need to. Premature withdrawals are subject to a penalty, which is calculated as follows:

If the withdrawal is made before 5 years, the penalty is 1% of the withdrawal amount.
If the withdrawal is made after 5 years but before 10 years, the penalty is 0.5% of the withdrawal amount.

There is no penalty for withdrawals made after 10 years.

April 15: Last date to invest for tax deduction in current financial year

The last date to invest in the Public Provident Scheme (PPS) for tax deduction in the current financial year is April 15. This means that investors who want to claim tax deduction on their PPS investments for the current financial year must make their contributions by this date.

The PPS is a tax-saving investment scheme, and investors can claim a deduction of up to Rs. 1.5 lakh on their taxable income under Section 80C of the Income Tax Act. The interest earned on PPS investments is also tax-free, which makes it an attractive investment option for those looking to save on taxes.

To claim tax deduction on PPS investments, investors must ensure that they make their contributions before the end of the financial year. Contributions made after April 15 will not be eligible for tax deduction in the current financial year.

Investors can make their PPS contributions in lump sum or in installments. However, it is important to note that the entire contribution must be made within the financial year to be eligible for tax deduction. For example, if an investor makes a contribution of Rs. 1 lakh on April 1 and another contribution of Rs. 50,000 on May 1, only the first contribution will be eligible for tax deduction in the current financial year.

March 31: End of financial year

The financial year for the Public Provident Scheme (PPS) ends on March 31. This means that all transactions related to the PPS, such as investments, withdrawals, and interest payments, must be completed by this date.

Investors who have made contributions to their PPS account during the financial year should ensure that their contributions are reflected in their account statement by March 31. If there are any discrepancies, investors should contact their bank or post office immediately.

The interest earned on PPS investments is credited to the investor’s account on March 31. Investors can view their account statement online or through their bank or post office to check the interest credited to their account.

Investors who are planning to withdraw from their PPS account should also do so before March 31. Withdrawals made after March 31 will be considered as withdrawals in the next financial year and may be subject to different tax implications.

April 1: Interest credited to PPS account

The interest earned on Public Provident Scheme (PPS) investments is credited to the investor’s account on April 1 of each year. The interest rate for the PPS is set by the Government of India and is currently 7.1%. The interest is compounded annually, which means that the interest earned in one year is added to the principal amount, and the interest earned in the following year is calculated on the increased principal amount.

Interest is tax-free
The interest earned on PPS investments is tax-free, which makes it an attractive investment option for those looking to save on taxes.
Interest is credited annually
The interest earned on PPS investments is credited to the investor’s account on April 1 of each year. Investors can view their account statement online or through their bank or post office to check the interest credited to their account.
Interest is compounded annually
The interest earned on PPS investments is compounded annually, which means that the interest earned in one year is added to the principal amount, and the interest earned in the following year is calculated on the increased principal amount.
Interest is calculated on the lowest balance
The interest on PPS investments is calculated on the lowest balance between the 5th and the last day of the month. This means that investors should try to maintain a consistent balance in their PPS account throughout the year to maximize their interest earnings.

June 30: Last date to file income tax return

The last date to file income tax return for the previous financial year is June 30. This deadline applies to all taxpayers, regardless of their income or tax liability.

File your return on time
It is important to file your income tax return on time to avoid penalties. The penalty for late filing of income tax return is Rs. 5,000 for individuals and Rs. 10,000 for companies.
File your return online
The easiest and most convenient way to file your income tax return is online. You can file your return online through the Income Tax Department’s e-filing portal.
Get help from a tax professional
If you are not comfortable filing your income tax return on your own, you can get help from a tax professional. Tax professionals can help you prepare your return and ensure that it is filed correctly.
Penalties for late filing
The penalty for late filing of income tax return is Rs. 5,000 for individuals and Rs. 10,000 for companies. The penalty is calculated on a daily basis, starting from July 1.

September 30: Last date to withdraw from PPS account without penalty

The last date to withdraw from a Public Provident Scheme (PPS) account without penalty is September 30. This means that investors who need to withdraw from their PPS account before the maturity date can do so without incurring any penalty if they withdraw before September 30.

However, it is important to note that premature withdrawals from PPS accounts are subject to a penalty if they are made after September 30. The penalty for premature withdrawal is calculated as follows:

If the withdrawal is made before 5 years, the penalty is 1% of the withdrawal amount.
If the withdrawal is made after 5 years but before 10 years, the penalty is 0.5% of the withdrawal amount.

There is no penalty for withdrawals made after 10 years.

Investors who are planning to withdraw from their PPS account should do so before September 30 to avoid incurring any penalty. They can withdraw their funds online, through their bank, or through their post office.

October 1: Penalty for premature withdrawal from PPS account

Premature withdrawals from a Public Provident Scheme (PPS) account are subject to a penalty if they are made after September 30. The penalty for premature withdrawal is calculated as follows:

If the withdrawal is made before 5 years, the penalty is 1% of the withdrawal amount.
This means that if you withdraw Rs. 10,000 from your PPS account before 5 years, you will have to pay a penalty of Rs. 100.
If the withdrawal is made after 5 years but before 10 years, the penalty is 0.5% of the withdrawal amount.
This means that if you withdraw Rs. 10,000 from your PPS account after 5 years but before 10 years, you will have to pay a penalty of Rs. 50.

There is no penalty for withdrawals made after 10 years.

December 31: Last date to invest in PPS account for current financial year

The last date to invest in a Public Provident Scheme (PPS) account for the current financial year is December 31. This means that investors who want to make a contribution to their PPS account for the current financial year must do so by this date.

The maximum contribution that can be made to a PPS account in a financial year is Rs. 1.5 lakh. Investors can make their contributions in lump sum or in installments. However, it is important to note that the entire contribution must be made within the financial year to be eligible for tax deduction.

Investors who make a contribution to their PPS account by December 31 will be eligible for tax deduction on their investment under Section 80C of the Income Tax Act. The interest earned on PPS investments is also tax-free, which makes it an attractive investment option for those looking to save on taxes.

Investors who miss the December 31 deadline can still make a contribution to their PPS account in the next financial year. However, they will not be eligible for tax deduction on their investment for the current financial year.

March 31: Maturity date for PPS account

The maturity date for a Public Provident Scheme (PPS) account is March 31 of the 15th financial year from the date of opening the account. This means that if you open a PPS account on April 1, 2023, the maturity date for your account will be March 31, 2038.

On the maturity date, the investor will receive the entire balance in their PPS account, including the principal amount and the interest earned over the 15-year period. The interest earned on PPS investments is compounded annually, which means that the interest earned in one year is added to the principal amount, and the interest earned in the following year is calculated on the increased principal amount. As a result, the returns on PPS investments grow exponentially over time.

Investors can choose to close their PPS account on the maturity date or they can extend the account for another 5 years. If the investor chooses to extend the account, they will continue to earn interest on their investment at the prevailing rate. However, the investor will not be eligible for any further tax deductions on their investment.

It is important to note that if the investor does not withdraw the funds from their PPS account on the maturity date or within one year after the maturity date, the account will be automatically closed by the bank or post office and the funds will be transferred to the investor’s savings account.

FAQ

Here are some frequently asked questions about the Public Provident Scheme (PPS) Calendar 2024-2025:

Question 1: When is the last date to invest in a PPS account for the current financial year?
Answer 1: The last date to invest in a PPS account for the current financial year is December 31.

Question 2: What is the maximum amount that can be invested in a PPS account in a financial year?
Answer 2: The maximum amount that can be invested in a PPS account in a financial year is Rs. 1.5 lakh.

Question 3: Is the interest earned on PPS investments taxable?
Answer 3: No, the interest earned on PPS investments is tax-free.

Question 4: What is the penalty for premature withdrawal from a PPS account?
Answer 4: The penalty for premature withdrawal from a PPS account is 1% of the withdrawal amount if the withdrawal is made before 5 years, and 0.5% of the withdrawal amount if the withdrawal is made after 5 years but before 10 years. There is no penalty for withdrawals made after 10 years.

Question 5: What is the maturity date for a PPS account?
Answer 5: The maturity date for a PPS account is March 31 of the 15th financial year from the date of opening the account.

Question 6: Can I extend my PPS account beyond the maturity date?
Answer 6: Yes, you can extend your PPS account beyond the maturity date for another 5 years. However, you will not be eligible for any further tax deductions on your investment.

Question 7: What happens if I do not withdraw the funds from my PPS account on the maturity date?
Answer 7: If you do not withdraw the funds from your PPS account on the maturity date or within one year after the maturity date, the account will be automatically closed by the bank or post office and the funds will be transferred to your savings account.

These are just a few of the frequently asked questions about the PPS Calendar 2024-2025. For more information, please consult the official website of the Public Provident Fund.

Now that you have a better understanding of the PPS Calendar 2024-2025, here are a few tips to help you make the most of your investment:

Tips

Here are a few tips to help you make the most of your investment in the Public Provident Scheme (PPS):

1. Invest early and regularly
The earlier you start investing in your PPS account, the more time your money has to grow. Even if you can only invest a small amount each month, it will add up over time. Try to set up a recurring deposit so that you can invest automatically each month.

2. Take advantage of tax deductions
The PPS offers tax deductions on investments up to Rs. 1.5 lakh per year. This can save you a significant amount of money on your taxes. Make sure to claim your tax deduction when you file your income tax return.

3. Stay invested for the long term
The PPS is a long-term investment scheme. The interest earned on your investment is compounded annually, which means that your money grows exponentially over time. The longer you stay invested, the more money you will earn.

4. Avoid premature withdrawals
Premature withdrawals from your PPS account are subject to a penalty. This penalty can reduce your returns, so it is best to avoid withdrawing your money before the maturity date.

By following these tips, you can make the most of your investment in the PPS and achieve your financial goals.

The PPS is a great way to save for your future. It is a safe and secure investment option that offers tax-free returns. If you are looking for a long-term investment option, the PPS is a great choice.

Conclusion

The PPS Calendar 2024-2025 provides a comprehensive overview of the important dates and deadlines for investors in the Public Provident Scheme (PPS). By staying informed about the PPS Calendar, investors can ensure that they are making the most of this investment option and maximizing their returns.

The main points of the PPS Calendar 2024-2025 are as follows:

April 1: Start of new financial year
April 15: Last date to invest for tax deduction in current financial year
March 31: End of financial year
April 1: Interest credited to PPS account
June 30: Last date to file income tax return
September 30: Last date to withdraw from PPS account without penalty
October 1: Penalty for premature withdrawal from PPS account
December 31: Last date to invest in PPS account for current financial year
March 31: Maturity date for PPS account

By staying informed about the PPS Calendar and following the tips outlined in this article, investors can make the most of their investment in the PPS and achieve their financial goals.