The end of the financial year is almost here, and it’s important to keep income-tax-saving investments active to reduce the tax burden.
Three key instruments to save taxes are the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and the National Pension System (NPS).
These schemes need minimum contributions to stay active, and if you haven’t made any deposits yet for this financial year, you need to do so before March 31.
Public Provident Fund (PPF) – For PPF accounts, the minimum yearly contribution is Rs 500, and the maximum allowed is Rs 1.5 lakh.
You must make this payment by March 31, 2024, to keep your account active. If you fail to meet this minimum, your PPF account will be considered inactive. To reactivate it, you’ll need to deposit the minimum amount of Rs 500 annually, along with a penalty of Rs 50 for each year of default.
National Pension System (NPS) – In NPS, the minimum contribution for each payment is Rs 500, and the minimum required per Financial Year is Rs 1,000.
You must make at least one contribution per Financial Year. However, you have the flexibility to decide how often you contribute beyond this minimum requirement. To reactivate your account, you’ll need to cover the total minimum contributions for the duration of the freeze, plus the minimum contribution required for the current year, along with a penalty of Rs 100.
Sukanya Samriddhi Yojana (SSY) – You must deposit a minimum of Rs 250 annually to keep the SSY account active.
The maximum allowable deposit is Rs 1.5 lakh per financial year. If you fail to meet this minimum requirement, your account will be considered inactive. To reactivate it, you’ll need to make a minimum payment of Rs 250, along with a penalty of Rs 50 for each year of non-compliance.
It’s important to meet these requirements to ensure tax-saving investments remain active and continue to provide benefits.
Source Agencies
