PPF NPS and SSY Accountholders: People who invest in the National Pension System (NPS), the Sukanya Samriddhi Yojana (SSY), or the Public Provident Fund (PPF) must put at least a certain amount of money into their accounts every year to keep them open. Their accounts could be frozen and they might have to pay fines if they don’t make this payment.
A story says that the last day to make minimum payments for this fiscal year is March 31.
The government has improved the new tax system. The new tax system changed the income tax slabs on April 1, 2023. The basic exemption limit was raised from Rs 2.5 lakh to Rs 3 lakh per financial year. In the new tax system, there is also a standard credit, and people with incomes up to Rs 7 lakh don’t have to pay any tax.
The rules on income tax let people (except those with business income) choose between the new and old tax systems every financial year if they want to.
Here is the bare minimum of money that each person must have in their accounts by March 31, 2024, in order to escape a fine for the above plans every financial year.
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PPF, NPS and SSY Accountholders – Act Now to Avoid Penalties Before March 31: PPF account holder
Every financial year, you need to put at least Rs. 500 into your PPF account to keep it current. Failure to make the minimum yearly payment will cause the PPF account to be closed. You can get your PPF account back if you pay a Rs 50 fine for each year you didn’t make payments.
When a PPF account stops being used, it stops being possible to borrow money or take money out. The PPF account lets you make loans starting in the third year, and it lets you take money out starting in the sixth year.
NPS account holder
For people who already have an NPS account, they need to put at least 1000 rupees into a Tier-1 NPS account every financial year. But NPS Tier-2 accounts don’t have to follow the minimum investment rule. By putting in an extra Rs 50,000 through Section 80CCD(1B) of the Income Tax Act, the NPS account is started to save tax.
SSY account holder
This is another way for people who want to save for their daughter to do so while also saving on taxes. The rules of the SSY scheme say that account users (people who invest in the scheme) must put in at least Rs 250 every financial year. The SSY account will be considered failed if the minimum payment of Rs 250 is not made in a financial year.
Anytime before the account matures, the plan rules say that it can be brought back to life. For each year that they don’t pay, a person will have to pay Rs 50 as a default fee. In addition to the default fee, each person will have to pay at least Rs. 250 for each year they didn’t pay.
If the Sukanya Samriddhi account that has been overdrawn is not brought back to life, the money that is in it will be due at maturity. After 21 years from the date it was opened or when the girl child turns 18 and gets married (one month before or three months after the wedding), the SSY account ends.
Also in this case, the person who doesn’t put money into the Sukanya Samriddhi account misses out on the tax-free interest that can be made by putting the maximum of Rs 1.5 lakh per financial year.
