Called Ponmagan Podhuvaippu Nidhi, the scheme will be launched on Friday. It will be a Public Provident Fund (PPF) subscriptions to which qualify for deduction from the taxable income under Section 80 C for Income Tax purposes. Under the scheme, interest for the current year is 8.7 per cent and the interest earned is totally exempt from Income Tax. All post offices will accept deposits and the minimum deposit allowed for a year is Rs 100 and maximum is Rs 1.5 lakh.

“Children below the age of 10 may open Ponmangan account through guardians, while those above 10 years may open the account individually. In fact, there is no age limit for opening an account under this scheme,” Alexander said.  The scheme is being launched at a time when the Chennai region is targetting savings bank income of Rs 170 crore this financial year. “Last year, the target was Rs 150 crore and we managed to achieve 95 per cent. This year we expect to attain the target as we hope the stock market crisis will force people to invest in savings schemes,” Alexander said.

Further, he expressed hope that the scheme would become popular in rural area. “If it is hit here then other regions in the country would follow us,” he says. The Selvamagal Semipu introduced in February created a record of sorts in TN as nearly 10.6 lakh accounts were opened.

source: http://www.newindianexpress.com / The New Indian Express / Home> States> Tamil Nadu / by Express News Service / September 04th, 2015