How Will the Latest Changes to the Public Provident Fund Scheme Affect Your Savings?

niyajahmed
Dear All,

We forward herewith a copy of Government of India Notification G.S.R.(E) & S.O.(E) dated November 25, 2011, on the captioned subject, the contents of which are self-explanatory.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA: EXTRAORDINARY, PART II – SEC. 3 (II)]

New Delhi, the 25th November, 2011

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

G.S.R. (E). – In exercise of the powers conferred by sub-section (4) of section 3 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government hereby makes the following further amendment to the Public Provident Fund Scheme, 1968, namely:

1. (1) This Scheme may be called the Public Provident Fund (Amendment) Scheme, 2011.

(2) It shall come into force on the 1st day of December 2011.

2. In the Public Provident Fund Scheme, 1968, -

(i) In paragraph 3, in sub-paragraph (1), for the letters and figures “Rs 70,000/-”, the letters and figures “Rs 1,00,000” shall be substituted;

(ii) In paragraph 11, in sub-paragraph (2), for the words “one per cent. per annum”, the words “two per cent. per annum” shall be substituted;

(iii) In Form-A, in paragraph (iv), for the letters and figures “Rs70,000/-”, the letters and figures “Rs 1,00,000” shall be substituted.

[F.No. 1/9/2011-NS-II]

M.A. Khan, Under Secretary

Note: The Scheme was notified vide notification G.S.R.1136(E), dated 15.06.1968 and amended vide G.S.R. 368 (E), dated 1.8.72, G.S.R. 217(E) dated 9.3.79, G.S.R. 271(E), dated 16.3.83, G.S.R. 54 (E), dated 7.2.84, G.S.R. 895(E), dated 23.6.86, G.S.R.1013 (E), dated 20.8.86, G.S.R.793 (E), dated 29.8.89, G.S.R. 477(E), dated 25.5.94, G.S.R. 489(E) dated 6.7.99, G.S.R. 908 (E) dated 6.12.2000, G.S.R. 679 (E), dated 4.10.2002, G.S.R.768(E), dated 15.11.2002, G.S.R. 585 (E), dated 25.7.2003, G.S.R.690 (E) dated 27.8.2003, G.S.R.755(E), dated 19.11.2004, G.S.R.291(E), dated 13.5.2005 and G.S.R.956(E), dated 7.12.2010.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA: EXTRAORDINARY, PART II – SEC. 3 (II)]

New Delhi, the 25th November, 2011

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

S.O. (E). – In pursuance of section 5 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government hereby notifies that the subscriptions made to the fund on or after the 1st day of December, 2011 and balances at the credit of the subscriber shall bear interest at the rate of 8.6 per cent. per annum.

[F.No. 1/9/2011-NS-II]

M.A. Khan, Under Secretary

Note: The Principal notification was published in the Gazette of India vide number S.O.48(E) dated 15th January, 2000 and subsequently amended vide S.O.192 (E) dated 1st March 2011, S.O.271 (E) dated 1st March, 2002 and S.O. 250(E) dated 1st March, 2003.

[Find out attachment]

Regards,

NIYAJ AHMED

[HR & IR Dept.]

[Email Removed For Privacy Reasons]
1 Attachment(s) [Login To View]

amith.chakravarti
Hi, the above information is valuable, but I just need a bit of additional information. If we roll out the changes from December 2011, how will it affect income tax? Should we consider the old slab from April 2011 till November 2011 and the new slab from December 2011 to March 2012?
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute