HomeCURRENT AFFAIRSBUSINESSSSY, PPF, NPS Account Holders Beware! Do this Before 31st March to...

SSY, PPF, NPS Account Holders Beware! Do this Before 31st March to Avoid Account Freeze and Penalties

Stay Compliant and Secure Your Investments: Understanding Minimum Deposit Requirements for SSY, PPF, and NPS

As the financial year end approaches, investors in Sukanya Samriddhi Yojana (SSY), Public Provident Fund (PPF), and National Pension System (NPS) are reminded to fulfill minimum deposit obligations to prevent penalties and maintain active accounts.

Minimum Deposit Requirements

Sukanya Samriddhi Yojana (SSY):

  • Investors must deposit a minimum of Rs 250 annually.
  • Failure to meet this requirement results in the account being considered as default.
  • To revive the account, a default fee of Rs 50 per year, along with the minimum contribution of Rs 250 for each year of default, is necessary.

Public Provident Fund (PPF):

  • The minimum deposit stipulated by PPF Rules 2019 is Rs 500 per financial year.
  • Non-compliance leads to the account becoming inactive.
  • To reactivate the account, investors must pay a default fee of Rs 50 for each year of default, along with the annual minimum contribution of Rs 500.

National Pension System (NPS):

  • A minimum deposit of Rs 1,000 annually is required in NPS accounts.
  • Failure to meet this requirement results in the account being frozen.
  • To activate a frozen account, investors can make a lump sum deposit of Rs 500, but a minimum annual contribution of Rs 1,000 is necessary to keep the account active.

Tax Implications and Considerations

The government’s introduction of a new tax regime with revised income tax slabs may influence investors’ decisions regarding tax-saving investments. However, those opting for the new tax system may forfeit tax benefits on investments in SSY, PPF, and NPS. Despite this, investors should remain mindful of the minimum deposit requirements to avoid penalties and account freezes.

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