End of March is finish of tax saving season as nicely. So, those that spend money on such devices like Public Provident Fund (PPF), National Pension System or NPS scheme and Sukanya Samriddhi Yojana (SSY), they’re suggested to test whether or not they have deposited minimal quantity in it or not. Failing to deposit minimal quantity in a single monetary 12 months would result in deactivation of their PPF, NPS and SSY account. Though, one can reopen these small saving schemes that permits saving on earnings tax outgo, however it will incur penalty. so, it is higher to test whether or not the investor has deposited minimal annual quantity in a single’s PPF, NPS or SSY account or not.
Here we listing out the minimal annual deposit required in PPF, NPS or SSY account and proceed investing with none interruption:
1] PPF account: As per the Public Provident Fund or PPF account guidelines, one has to deposit minimal ₹500 in single monetary 12 months to maintain one’s provident fund account in energetic mode. Failing to deposit minimal annual deposit quantity would result in inactivation of PPF account. However, one can re-active one’s PPF account paying ₹50 penalty for annually of default.
Speaking on PPF account rule; Harsh Roongta, Head at Fee Only Investment Advisers stated, “A PPF account holder has to deposit minimum ₹500 in single financial year to continue investing in one’s tax saving provident fund account. If a PPF account holder fails to deposit at least ₹500 in one’s PPF account in one financial year, then in that case his or her PPF account will become inactive. Once the PPF account become inactive, then an investor won’t be able to continue investing in it till it gets it re-activated again by depositing ₹500 minimum annual deposit and ₹50 penalty for each year of minimum deposit default. Remember, one has to reactivate one’s PPF account within 15 years of PPF maturity period and an inactive PPF account can’t be extended beyond 15 years.”
2] NPS account: Harsh Roongta of Fee Only Investment Advisers stated that one must deposit not less than ₹1000 in single monetary 12 months in Tier-1 NPS account. Minimum deposit rule does not get relevant on NPS Tier-2 account.
Speaking on NPS account guidelines; SEBI registered tax and funding specialists Jitendra Solanki stated, “Failing to deposit minimum ₹1,000 in Tier-1 NPS account leads to dormancy of one’s NPS account. As per the NPS scheme rules, one will be able to re-open one’s NPS account after depositing ₹1,000 minimum deposit and a penalty of ₹100 for each year of minimum deposit default.”
3] SSY account: SEBI registered professional Jitendra Solanki stated that SSY account holders are required to deposit not less than ₹250 in single monetary 12 months. In case, a SSY account holder fails to deposit ₹250 in a single monetary 12 months, then the SSY account will likely be freezed. To get it re-opened, one must pay ₹250 minimal annual deposit quantity and ₹50 penalty for annually of minimal deposit default. Solanki stated that one can re-open one’s SSY account earlier than the woman youngster attains 15 years in any other case the quantity will get freezed and it will be credited to 1’s hooked up checking account after the maturity interval.
Hence, small saving schemes like PPF, NPS or SSY account holders are suggested to test it as soon as whether or not they have deposited the minimal annual quantity of their respective PPF, NPS and SSY accounts or not.
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