Penalty for missing minimum deposit in PPF, SSY, NPS account by March 31: At least one contribution in a year is mandatory for investors of small savings schemes like Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and retirement planning with National Pension System (NPS).
Subscribers of above schemes are required to deposit at least the minimum amount per year to keep their accounts active. This payment has to be made before the end of the Financial Year, i.e. by 31st March.
For instance, for FY 2023-24, you need to make the minimum deposit by 31st of March 2024 in these schemes. No worries if you have already made the investment earlier during the current financial year.
Investing in above schemes also helps individuals claim deductions under various sections of Income Tax Act under the Old Regime. Let’s have a look at the minimum amount required to be invested in these schemes in a year and the penalty for not doing so.
Penalty for missing minimum deposit in PPF
The minimum deposit you need to make in a PPF account in a financial year is Rs 500. If you fail to make this deposit by March 31 then the account becomes inactive.
However, you can revive an inactive PPF account later by paying Rs 50 for each year of default. Till the time your PPF account is inactive, you name make any withdrawal or avail the loan facility. Any withdrawal from an inactive PPF account can be made only at the time of maturity.
Penalty for missing minimum deposit in SSY
The minimum deposit you need to make in a SSY account in a financial year is Rs 250. The SSY account caters to the girl child. With the help of SSY account, parents can accumulate a substantial corpus by the time the girl child becomes 21 years old.
If you fail to make minimum Rs 250 deposit in SSY account by March 31 then the account becomes a default account.
However, you can revive a defaulted SSY account later by paying Rs 50 for each year of default. Till the time SSY account is inactive, you cannot make any withdrawal or avail the loan facility. Any withdrawal from such account can be made only at the time of maturity.
Penalty for missing minimum deposit in NPS
The minimum amount required to invest in NPS account in a financial year is Rs 1000. In case you fail to make the minimum deposit then the account is frozen. However, there is no penalty charges for frozen NPS accounts. Such accounts can be activated by making a minimum contribution of Rs 500 for a single deposit. However, you need to invest Rs 1000 in a FY to ensure your account doesn’t get frozen.
Now that you know that there are penalties for not making the minimum deposit in NPS, PPF SSY accounts, please ensure to do so by March 31, 2024.
Disclaimer: The above content is for informational purposes only.
