Many other small savings schemes start requiring minimum contribution every year as per Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and National Pension System (NPS).
If the account holders of these schemes have not deposited any money for the current financial year, then such people are considered necessary to make the payment on or before 31 March 2022 keeping in mind to keep their account active. All these schemes are going to give the benefit of deduction of 1.5 lakh rupees to the taxpayers keeping in mind the section 80C of the Income Tax Act.
Public Provident Fund (PPF)
If we look at the PPF account in a financial year, then the minimum annual contribution has been Rs 500. The last date for making this payment for the current financial year is March 31, 2022. If an account holder fails to make contributions by March 31, 2022, he is liable to pay a penalty of Rs 50 for the previous year and Rs 500 outstanding subscription for that year.
With this, if the minimum contribution is not being made in the financial year, then the PPF account is deemed to be dormant. A dormant PPF account is not entitled to the facility of making partial withdrawals along with availing loan against it, until the account is reactivated.
National pension system will benefit
It is considered mandatory for NPS account holders to contribute a minimum of Rs 1,000 in a financial year to keep the account active. If the minimum contribution is not made in the NPS Tier-I account, the account is deemed to be inactive. If you are looking to revive the dormant NPS account then you need to pay a penalty of Rs 100 every year along with the minimum contribution.
Point of Presence (POP) charges for unfreezing NPS account will also start adding up. If one has a Tier II NPS account (where lock-in of funds is not required), then the freezing of the Tier-I account along with the Tier-II account starts automatically .
Sukanya Samriddhi Account (SSA)
If you are planning to keep Sukanya Samriddhi account active then you need to deposit minimum Rs 250 in a financial year. If the minimum deposit is not made in any financial year, the account is considered inoperative. As per the date of opening of SSY account, sometime before the completion of 15 years, the inoperative account is considered as regular.
