New ppf account and covid guidelines from govt
In March, 2020 because of the COVID pandemic and end of financial year, Ministry of Finance declared that the tax savings for the FY 2019-2020 can be done till 30th June, 2020 w.r.t PPF accounts and other savings instruments. Here is the update from the Income Tax department on this - twitter.com/FinMinIndia/status/[deleted]
Based on the above guidelines, I opened a new PPF account on 30th May,2020. I submitted the PPF declaration form for considering the deposited amount of Rs. 1,50,000/- for the last financial year. My bank rejected my declaration form saying that the account was created in this financial year (i.e. after April 1st, 2020) and hence not eligible for the FY 2019-20 tax savings and deductions.
The Income Tax departments' update and also as per the Finance ministry notification, it is not clear if we can open a new PPF account after March, 31st, 2020 to claim the tax savings benefit for last financial year. Since we were under lockdown from March 22nd onwards, it is not logical to go the bank to open a PPF account during the lockdown and then deposit the amount after April 1st, 2020.
Can you confirm I am eligible for claiming the amount of Rs. 1,50,000 as tax savings against FY 2019-2020 as per my declaration to my bank, please?