After the implementation of the new income tax system, many people have adopted it. In this system you do not get tax exemption on many types of investments. However, if you have invested in Sukanya Samriddhi, PPF and NPS and are thinking of not putting money in these accounts in future, then it may have bad consequences.
Investors in Sukanya Samriddhi Yojana (SSY), Public Provident Fund (PPF) and National Pension System (NPS) have to deposit a minimum amount every financial year to keep their accounts active. Failure to deposit this minimum annual amount may result in the account being frozen. Penalty may also be imposed.
The last date for depositing the minimum amount in PPF, SSY and NPS accounts for the current financial year is March 31, 2024. Its connection is also with taxation. Actually, the government has made the new tax system more attractive.
Under this, with the change in income tax slab from April 1, 2023, the basic exemption limit has been increased from Rs 2.5 lakh to Rs 3 lakh. Standard deduction has also been included in the new tax system. In this way, there is no tax liability on income up to Rs 7 lakh.
People who have already been investing in tax saving schemes like PPF, SSY and NPS may have switched to the new tax regime or may be planning to do so. If so, then they will not be able to avail tax benefits on investment in these schemes.
Such people may also feel that they do not need to invest or deposit in these schemes for the financial year 2023-24. However, penalty may be imposed for not depositing the minimum amount in these accounts. To avoid penalty, here we are telling you about the minimum deposit requirement for each scheme.
Sukanya Samriddhi Yojana (SSY)
SSY scheme requires a minimum deposit of Rs 250 every financial year. If the minimum deposit is not deposited, the account is considered a default account. To revive the account, a default fee of Rs 50 has to be paid for each year of default. This has to be paid with a minimum contribution of Rs 250 for each year of default.
Public Provident Fund (PPF)
As per PPF Rules 2019, it is necessary to deposit a minimum of Rs 500 in the PPF account every financial year. If the minimum amount is not deposited, the PPF account becomes inactive. To revive the account, a default fee of Rs 50 will have to be paid for each year with an annual minimum amount of Rs 500.
National Pension System(NPS)
Investors have to deposit at least Rs 1,000 in their NPS accounts every financial year. If this minimum amount is not deposited the account gets frozen. A minimum contribution of Rs 500 can be made as a lump sum deposit to activate the freeze account. However, a minimum contribution of Rs 1,000 per financial year is required to keep the account active.
