As we method the tip of the monetary 12 months, many tax-saving funding choices like Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and Nationwide Pension System (NPS) require minimal contributions to stop them from turning inactive. So, if you’re an account holder of any of such schemes, and haven’t deposited any cash for the present monetary 12 months, it’s essential to pay on or earlier than March 31.
Investments in PPF, NPS, SSY assist taxpayers avail of a deduction of as much as ₹1.5 lakh beneath Part 80C of the Earnings-Tax Act. The deduction, nevertheless, may be claimed beneath the previous tax regime solely. If a brand new tax regime is chosen, one has to forgo most tax exemptions and deductions.
So, allow us to perceive easy methods to maintain these accounts lively
Public Provident Fund (PPF)
The minimal yearly contribution for the PPF account in a fiscal 12 months is ₹500. The final date to make this fee for the present monetary 12 months is March 31, 2022.
If a minimal contribution is just not made within the monetary 12 months, the PPF account shall be handled as dormant. You’ll have to get it re-activated once more by depositing a ₹500 minimal annual deposit and a ₹50 penalty for annually of minimal deposit default.
Nationwide Pension System (NPS)
For Tier-I NPS account holders, it’s obligatory to make a minimal contribution of ₹1,000 in a monetary 12 months to make sure that the account stays lively. The minimal deposit rule is just not relevant to the NPS Tier-2 account.
If the minimal contribution is just not made to the NPS Tier-I account, then the account will change into dormant. As per the NPS scheme guidelines, one will be capable to re-open one’s NPS account after depositing ₹1,000 minimal deposit and a penalty of ₹100 for annually of minimal deposit default.
Sukanya Samriddhi Yojana (SSY)
SSY account holders are required to deposit no less than ₹250 to maintain their account lively. If the minimal deposit is just not made in a monetary 12 months, then the account shall be handled as dormant.
To regularise the account, the account holder must make a minimal fee of ₹250, together with a penalty of ₹50 for annually.
Supply: Live Mint