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PPF, NPS, Sukanya Samriddhi Yojana: Here’s What Happens If You Don’t Deposit Minimum Balance in These Schemes Today
PPF, NPS, Sukanya Samriddhi Yojana: If you have not so far deposited any money in these accounts, then make sure you do it on or before March 31, 2022, or else your account will become inactive.
New Delhi: The account holders must note that March 31 is the last day to deposit minimum balance in the tax saving schemes such as Public Provident Fund (PPF), National Pension System (NPS) and Sukanya Samriddhi Yojana (SSY). These tax-saving schemes need the investor to make a minimum deposit every financial year to ensure that the account remains active all through the year. If you have not so far deposited any money in these accounts, then make sure you do it on or before March 31, 2022, or else your account will become inactive.
As the deadline comes to an end, here’s a look at the minimum amount you need to invest in tax-saving schemes to keep them active and check what happens if you do not make the minimum contribution.
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Public Provident Fund: In Public Provident Fund, the minimum annual deposit in a financial year is Rs 500 and the last date to make this contribution for the current financial year is March 31, 2022. If an individual fails to make the contribution by this date, then he will have to pay a penalty of Rs 50 for each year he fails to make the minimum contribution along with an arrear subscription of Rs 500 for each year. Moreover, if the minimum contribution is not made in the financial year, the PPF account will be treated as discontinued. Additionally, a discontinued PPF account will not be considered for obtaining a loan or making partial withdrawals unless the account is revived.
National Pension System: For National Pension System, it is mandatory to make a minimum contribution of Rs 1,000 in a financial year to ensure that the account remains active. However, if the minimum contribution is not made to the account, then it will become dormant. To revive the dormant NPS account, the individuals will have to pay a penalty of Rs 100 every year along with minimum contributions.
Sukanya Samriddhi Yojana: To make sure that the Sukanya Samriddhi Account is active, a minimum deposit of Rs 250 is required to be deposited in a financial year. However, if the minimum deposit is not made in a financial year, then it will be treated as a defaulted account. To regularise the account, the individuals will have to pay a minimum contribution of Rs 250, along with a penalty of Rs 50 for each defaulted year.
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