New Delhi- Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) are popular investment schemes. In both these schemes, not only good interest is given, but also tax exemption is given.
Currently, 7.1 percent interest is being given on PPF. Sukanya Samriddhi Yojana account can be opened only in the name of a girl child below the age of 10 years by the parents or legal guardian. In both these schemes, it is necessary to deposit a minimum amount in a financial year. Therefore, if you do not make the minimum investment in both these schemes by March 31, your accounts may become inactive (closed) and you may have to pay a penalty to reactivate them.
Public Provident Fund (PPF): The minimum deposit for PPF account holders is Rs 500, which means you have to invest at least Rs 500 in it in a financial year. If you do not do this, your account may be closed. If you do not deposit this money, you will have to pay a penalty of Rs 50. Therefore, if you want to keep the account active and avoid the penalty, deposit the minimum required amount before March 31, 2025.
The minimum deposit amount in the Sukanya
Samriddhi Yojana is also Rs 250 per financial year. Currently, the interest rate in this scheme is 8.2%. If it is not deposited in the financial year, then the account can be closed. If the amount is not deposited on time, then an additional fee of Rs 50 will have to be paid. The SSY account remains valid for 21 years or can be closed on the marriage of the girl after the age of 18. However, partial withdrawal of money for higher education is allowed after the daughter turns 18.
Benefit of Tax Exemption
Investing in both PPF and SSY schemes provides the benefit of tax exemption under Section 80C of the Income Tax Act. Under this, tax can be saved on annual investment of up to Rs 1.5 lakh.
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