As we approach the end of the financial year, several tax-saving investment options such as Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and National Pension System (NPS) require a minimum contribution to prevent deactivation. it occurs. So, if you are an account holder of any such scheme, and have not deposited any money for the current financial year, then you have to make the payment on or before 31st March.
Investing in PPF, NPS, SSY helps taxpayers avail deductions up to 1.5 lakh under section 80C of the Income Tax Act. However, the deduction can be claimed only under the old tax regime. If a new tax regime is chosen, most tax exemptions and deductions have to be waived.
So, let us understand how to keep these accounts active
Public Provident Fund (PPF)
Minimum annual contribution for PPF accounts in a financial year 500. The last date for making this payment for the current financial year is March 31, 2022.
If the minimum contribution is not made in the financial year, the PPF account will be considered inoperative. you a. It needs to be reactivated by submitting 500 minimum annual deposit and a 50 penalty for each year of minimum deposit default.
National Pension System (NPS)
Tier-I. For NPS It is mandatory for the account holders to make a minimum contribution 1,000 in a financial year to ensure that the account remains active. Minimum deposit rule does not apply to NPS Tier-2 account.
If the minimum contribution is not made to the NPS Tier-I account, the account will become inactive. As per the rules of the NPS scheme, one will be able to re-open his NPS account after depositing 1,000 minimum deposit and a fine of 100 for each year of minimum deposit default.
Sukanya Samriddhi Yojana (SSY)
SSY account holders are required to deposit at least 250 to keep your account active. If the minimum deposit is not made in any financial year, the account will be considered inoperative.
To regularize the account, the account holder has to make a minimum payment of 250, with a penalty of 50 for each year.
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