As the financial year draws to a close, various income tax-saving investment avenues, such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and National Pension System (NPS) necessitate minimum contributions to maintain their active status. Therefore, if you hold an account in any of these schemes and haven’t made any deposits for the current financial year, you must do so by March 31.
Public Provident Fund (PPF)
For a Public Provident Fund (PPF) account, the minimum annual contribution required is ₹500, while the maximum allowed is ₹1.5 lakh. The deadline for making this payment for the current fiscal year is March 31, 2024. Failure to make the minimum contribution during the financial year will result in the PPF account being considered dormant. To reactivate it, you’ll need to deposit the minimum annual amount of ₹500 along with a penalty of ₹50 for each year of default.
National Pension System (NPS)
The minimum amount for each contribution in NPS is set at ₹500, while the minimum contribution required per Financial Year stands at ₹1,000. Additionally, at least one contribution per Financial Year is required. However, beyond this mandatory minimum, subscribers have the flexibility to decide on the frequency of contributions throughout the year based on their convenience.
To reactivate the account, the customer needs to make payments covering the total minimum contributions for the duration of the freeze and the minimum contribution required for the year in which the account is being reactivated, along with a penalty of ₹100.
Sukanya Samriddhi Yojana (SSY)
In Sukanya Samriddhi Yojana (SSY) accounts, holders must deposit a minimum of ₹250 annually to keep the account active. The maximum allowable deposit is Rs. 1.5 lakh per financial year. If this minimum requirement is not met, the account will be deemed dormant.
To reactivate the account, the account holder must make a minimum payment of ₹250, along with a penalty of ₹50 for each year of non-compliance.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
More
Less
Published: 29 Mar 2024, 02:30 PM IST