PPF to terminate HUFs investments - ALLCGNEWS

ALLCGNEWS

Central Government Employment News

Post Top Ad

22 December 2010

Home Unlabelled PPF to terminate HUFs investments

PPF to terminate HUFs investments





    The finance ministry has said that 15-year Public Provident Fund (PPF) accounts of Hindu Undivided Families (HUFs) will be closed by the end of fiscal 2011. The new PPF Act amendment, the ministry says will be effective December 7 onwards. 

   “The move is aimed at discouraging HUF investments in PPF,” the ministry explained, adding that the cut-off date for PPF HUF accounts had been fixed on May 13, 2005. The HUF PPF accounts could be extended by five years first and then by an additional five years. The government had, however, stopped issuing new PPF accounts since the past few years.

   After the government stopped fresh investment by HUFs in PPF from May 2005, many continued to have the money parked in the scheme as it earned them a 8% tax-free interest. Some were older investments yet to finish the 15-year period while the others availed a five-year extension that was available in the scheme.



Posted by at

No comments:

Post a Comment

Feel free to drop your comments and suggestions

Subscribe to: Post Comments (Atom)

Disclaimer

The contents and information given in this blog are purely informative in nature and should not under any circumstances be taken as authority. Allcgnews blog may contain typographical errors in its contents. All efforts had been made to ensure accuracy of the content on this blog. The same should not be construed as a statement of law or used for any legal purposes. ALLCGNEWS accepts no responsibility in relation to the accuracy, completeness or otherwise, of the contents. Users are advised to verify/check any information with the relevant departments and to obtain any appropriate professional advice before acting on the information provided in the blog. We cannot guarantee the availability linked pages at all times.

Post Top Ad