PPF, NPS, SSY: Why You Must Make Minimal Deposit in These Accounts Earlier than March 31


As we method the top of the monetary 12 months, lots of your tax-saving schemes that require a minimal deposit each monetary 12 months are Public Provident Fund (PPF), Nationwide Pension System (NPS), and Sukanya Samriddhi Yojana (SSY) to maintain them energetic and save taxes. Failing to deposit a minimal quantity in PPF, SSY, NPS will make these accounts inactive and one must regularize or unfreeze it earlier than making recent investments. The method of reactivating could also be time-consuming and might also contain a penalty. With the intention to keep away from this, be sure to have invested the minimal quantity earlier than the monetary 12 months ends.

Right here’s What’s the Minimal Cost that needs to be Made, What You Could Lose on Defaulting and Methods to Revive a Dormant Account:


If you happen to fail to make the contribution by this date, then you’ll have to pay a penalty of Rs 50 for every year you fail to make the minimal contribution together with an arrear subscription of Rs 500 for every year. Additional, if a minimal contribution is just not made within the monetary 12 months, the PPF account shall be handled as discontinued. A discontinued PPF account is not going to be entitled to the power of acquiring a mortgage or making partial withdrawals until the account is revived. A discontinued account could be revived earlier than the top of its unique maturity date. It can’t be revived after maturity, nor can it’s closed earlier than maturity. Added to this, a discontinued account can’t be prolonged. The PPF subscriber will get again the quantity within the account solely after the expiry of the maturity interval of 15 years together with curiosity which can proceed to be added every year (even in a discontinued account) on the stability at a price fastened on occasion.


NPS Tier I accounts want a minimal contribution of Rs 1,000 per monetary 12 months, with no higher restrict. There’s no minimal necessary contribution for Tier II accounts. Defaulting will lead to your Tier 1 account getting frozen. Account-holders who transact on-line can regularize it instantly by paying a penalty of ₹100 together with Rs 1,000 as arrear for every defaulted 12 months. Offline account holders ought to write to their point-of-presence (POP) to provoke the method of unfreezing.


To maintain the Sukanya Samriddhi Account energetic, a minimal deposit of Rs 250 is required to be deposited in a monetary 12 months. If the minimal deposit is just not made in a monetary 12 months, then it is going to be handled as a defaulted account. A defaulted account could be regularised earlier than the completion of 15 years from the date of opening of the account of the SSY account. To regularise the account, you may be required to pay a minimal contribution of Rs 250, together with a penalty of Rs 50 for every defaulted 12 months.

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