PPF, NPS, SSY: There’s not much time remaining before the financial year 2025-26 concludes. The deadline is March 31. As a result, this period is deemed the most critical for tax planning, investments, and reviewing financial documents. Completing certain essential tasks on time can not only help save on taxes but also prevent penalties and excessive TDS deductions.
If you hold an account in PPF (Public Provident Fund), NPS (National Pension System), or Sukanya Samriddhi Yojana (SSY), ensure that you deposit the minimum balance before the financial year ends. Neglecting to do so may lead to your account becoming inactive and could incur a penalty.
What is the required deposit for PPF?
In the Public Provident Fund (PPF), a minimum deposit of Rs 500 is necessary each financial year. If this amount is not deposited in any given year, the account will become inactive. Once inactive, investors lose eligibility for loans or partial withdrawals.
However, reactivation is possible. This involves making a deposit of Rs 500 along with a penalty of Rs 50 for each year missed. Therefore, be sure to deposit the minimum amount by March 31st. PPF is a government scheme that serves as a great long-term savings option, offering 7.1% interest and being tax-exempt.
What are the rules for an SSY account?
Sukanya Samriddhi Yojana (SSY) is a government initiative that has gained significant popularity in recent years. Millions are utilizing this savings account for their daughters’ futures. You must deposit a minimum of Rs 250 annually. If the minimum amount is not deposited in any financial year, the account will be classified as a default account. Similar to PPF, you can reactivate your account by paying a penalty of Rs 250 plus Rs 50 for each year missed.
NPS Account Rules
Speaking of NPS, you’re required to deposit a minimum of Rs 1,000 annually into your NPS Tier-1 account, and failing to do so will result in your account being frozen. To reactivate your account, you’ll need to pay Rs 1,000 for the missed year, plus a Rs 100 penalty. If you haven’t yet deposited the minimum amount in these schemes, be sure to do so before March 31, 2026. Doing so will keep your account active and allow you to reap the full benefits of tax savings.