As we approach the end of the fiscal year, many of you tax saving schemes The ones which require minimum deposit in every financial year are Public Provident Fund (PF).PPF), National Pension System (NPS), and Sukanya Samriddhi Yojana (SSY). Failure to deposit the minimum amount in PPF, SSY, NPS will render those accounts inactive and will have to be regularized or unfreezed before making new investments. The reactivation process can be time-consuming and may involve fines. To avoid this, make sure that you have invested the minimum amount before the end of the financial year.
Here’s what the minimum payment is, what you can lose if you default, and how to revive a dormant account:
PPF
If you fail to contribute by this date, you will have to pay a fine of Rs 50 for each year you fail to make a minimum contribution along with an outstanding subscription of Rs 500 for each year. Also, if the minimum contribution is not made in the financial year, the PPF account will be closed. A closed PPF account will not be entitled to the facility of availing loan or making partial withdrawals until the account is revived. A closed account can be revived before the expiry of its original maturity date. It cannot be revived after maturity, nor can it be closed before maturity. With this, a closed account cannot be extended. The PPF subscriber will get the amount back in the account with interest only after the maturity period of 15 years, which will continue to be added to the balance every year (even in a closed account) at the prescribed rate from time to time. Time.
NPS
A minimum contribution of Rs 1,000 per financial year should be made in NPS Tier I accounts, with no upper limit. There is no minimum mandatory contribution for Tier II accounts. By default, your Tier 1 account will be frozen. Account holders doing online transactions can directly regularize it by paying a fine of ₹100 along with ₹1,000 as arrears for each default year. Offline account holders should write in their presence (POP) to initiate the process of unfreezing.
SSY
A minimum deposit of Rs 250 is required in a financial year to keep the Sukanya Samriddhi account active. If the minimum deposit is not made in any financial year, it will be treated as a defaulted account. A defaulted account can be regularized before completion of 15 years from the date of opening of SSY account. To regularize the account, you have to make a minimum contribution of Rs 250 along with a penalty of Rs 50 for each defaulting year.
read all breaking news , today’s fresh news And Ukraine-Russia War Live Updates Here.