Ponmagan Scheme in Post Office

Ponmagan Scheme also known as Ponmagan Podhuvaippu Nidhi Scheme (PPNS) is a social welfare scheme launched by the government of Tamil Nadu in 2015. The scheme aims to provide financial assistance to male students of economically weaker sections of the state to pursue their education.

Ponmagan Scheme is one of its kind post office scheme for boy child in Tamilnadu. Parents can invest in their baby boy’s future with this post office scheme.

Objectives of the Ponmagan Scheme

Here are the Objectives of the Ponmagan Scheme:

• To promote inclusive education in Tamil Nadu by enabling economically weaker sections to save for their male children's schooling.
• To help underprivileged parents/guardians finance their sons' education through postal savings accounts.
• To ensure students have access to education regardless of financial background.
• To bridge the affordability gap by encouraging systematic saving toward boys' educational expenses.
• To back the educational development of boys from vulnerable economic sections of society.

Highlights Of the Ponmagan Scheme

The key highlights of the Ponmagan Podhuvaippu Nidhi Scheme in the Post Office are mentioned in the table below:

Interest Rate for Ponmagan Scheme

Under this scheme, parents or guardians can open a savings account in the name of their boy child at any post office and the scheme offers attractive interest rates and tax benefits, making it an ideal way to save for the future of the boy child.

As of now, the scheme offers an annual interest of 9.7% p.a., which is compounded yearly, allowing the savings to grow at this fixed rate during the deposit period.

Eligibility Criteria for the Ponmagan Scheme

Here are the eligibility criteria for a Ponmagan Podhuvaippu Nidhi Scheme (PPNS) account rephrased in a table format:

Documents Required for the Ponmagan Scheme

To open a savings account under the Ponmagan Scheme, the following documents need to be submitted:

• Application form for the scheme
• Passport-sized photograph of the male child
• Income certificate validating the parents'/guardians' Economically Weaker Section status
• Recent academic year school certificate for the boy enrolled
• Bank account details in the name of the male child
• Valid proof of Tamil Nadu residence such as a Voter ID card, ration card, or Aadhaar card

How to Apply for Ponmagan Podhuvaippu Nidhi Scheme (PPNS)

Here are the steps to apply for the Ponmagan Podhuvaippu Nidhi Scheme (PPNS):

1. Visit the nearest post office branch to obtain the requisite application form
2. Fill out the form providing all details and attach the necessary documents
3. Submit the completed application form along with documents, and initial deposit money to the post office
4. Post office officials will verify details in the application, validate documents, and activate the new PPNS account

Ponmagan Podhuvaippu Nidhi Scheme Maturity Period

The Ponmagan Scheme savings account has a maturity term of 15 years, which can be prolonged by another 5 years if the extension is applied for within one year of the maturity date. Premature account closure is prohibited, however partial withdrawals are allowed after the account has been operational for 7 financial years.

Benefits of Ponmagan Podhuvaippu Nidhi Scheme (PPNS)

The Ponmagan Podhuvaippu Nidhi Scheme offers a robust value proposition for economically disadvantaged parents to secure their sons' educational future. Key perks make it an attractive savings tool for underprivileged students' higher studies.

Here are the benefits of the Ponmagan Scheme

• Accessibility: Easily accessible through designated post offices in Tamil Nadu and Puducherry.
• Affordability: Affordable minimum deposit amount of just ₹100.
• Attractive Returns: Provides fixed interest rate, typically higher than other small savings schemes.
• Reliability: Backed by the government thereby offering a secure investment option.
• Incentives: Offers tax benefits under Section 80C of the Income Tax Act.

Ponmagan Scheme Tax Exemptions

The Ponmagan Podhuvaippu Nidhi Scheme (PPNS) offers tax exemptions for investments of up to Rs.1.5 lakh under Section 80C of the Income Tax Act, 1961. Furthermore, the interest earned on the PPNS account is also exempt from taxes.