SSY/PPF Penalty: Deposit money in Sukanya Samriddhi Yojana, PPF by 31st March, otherwise penalty will be imposed!

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Investors in Sukanya Samriddhi Yojana (SSY), the Public Provident Fund (PPF), and the National Pension System (NPS) are required to deposit a minimum amount every financial year to keep their accounts active. Failure to deposit this minimum annual amount may result in account freezing. A fine may also be imposed. The last date for depositing the minimum amount in PPF, SSY, and NPS accounts for the current financial year is March 31, 2024. This is also related to taxation. Actually, the government has made the new tax system more attractive. Under this, with the change in income tax slab from April 1, 2023, the basic exemption limit has been increased from Rs 2.5 lakh to Rs 3 lakh. Standard deduction has also been included in the new tax system. In this way, there is no tax liability on income up to Rs 7 lakh.

People who are already investing in tax saving schemes like PPF, SSY, and NPS may have switched to the new tax regime or may be planning to do so. If so, then they will not be able to avail tax benefits on investments in these schemes. Such people may also feel that they do not need to invest or deposit in these schemes for the financial year 2023-24. However, the penalty may be imposed for not depositing the minimum amount in these accounts. To avoid penalties, here we are telling you about the minimum deposit amount for each scheme.

Sukanya Samriddhi Yojana (SSY)

SSY scheme requires a minimum deposit of Rs 250 every financial year. If the minimum deposit amount is not deposited, the account is considered a default account. To revive the account, a default fee of Rs 50 has to be paid for each default year. This has to be paid with a minimum contribution of Rs 250 for each year of default.

Public Provident Fund (PPF)

As per PPF Rules 2019, it is necessary to deposit a minimum of Rs 500 in the PPF account every financial year. PPF account becomes inactive if the minimum amount is not deposited. To revive the account, a default fee of Rs 50 has to be paid every year with an annual minimum amount of Rs 500.

National Pension System (NPS)

Investors must deposit at least Rs 1,000 in their NPS account every financial year. If this minimum amount is not deposited the account gets frozen. A minimum contribution of Rs 500 can be made as a one-time deposit to activate the freeze account. However, a minimum contribution of Rs 1,000 per financial year is required to keep the account active.