Investing in PPF/SSY : There is an important update for those investing in various small savings schemes. Investors of Public Provident Fund i.e. PPF, Sukanya Samriddhi Yojana and NPS may suffer other losses including penalty. If you also have an account in any of these schemes, but you have not deposited money in it yet in this financial year, then you have only time till March 31 to keep the account active. If you miss making the minimum annual deposit, your account may be frozen. Also, you may have to pay a fine. Moreover, you may also be deprived of saving tax.
Delay can cause these losses
The last date for minimum deposit in PPF, NPS and Sukanya Samriddhi Yojana is 31st March of every financial year. That means for the financial year 2023-24 this date is 31 March 2024. According to the Public Provident Fund Rules 2019, PPF account holders are required to deposit at least Rs 500 in the account every financial year. If the minimum amount is not deposited, the PPF account will be discontinued.
Minimum investment required for PPF
Loan and partial withdrawal facility will not be available after the account is closed. Not only this, without completely closing such account, you will not be able to open another account in your name. Closed PPF account can be reopened, but for this you will have to pay a penalty of Rs 50 every year. Along with the fine, the person will also have to deposit Rs 500 as annual minimum deposit. If the account is closed due to non-payment of minimum deposit, you will have to pay Rs 550 every year to reopen it.
Such minimum investment in Sukanya
Sukanya Samriddhi Yojana is considered a good option for arranging money for the career and marriage of the beloved daughter. If you have an account in Sukanya Samriddhi Yojana, then you have to deposit a minimum of Rs 250 every year. If you do not deposit this money then the account is considered default. To reopen the account, a fine of Rs 50 per year will have to be paid. Also, a minimum deposit of Rs 250 will have to be made every year.
Tax related benefits of these schemes
If you are thinking of paying tax in the old tax regime in the financial year 2023-24, then investing in schemes like PPF and Sukanya gives an opportunity to save tax. Under Section 80C of the Income Tax Act, deduction of up to Rs 1.5 lakh is available on investments in PPF and Sukanya. To reduce the tax burden by taking advantage of deduction under 80C, it is necessary to invest by March 31, 2024. The last date for making tax saving investments for every financial year is 31st March. If you do not invest till this date, you will not be able to claim deduction in that financial year.
These changes have taken place in the new tax regime
The government has made the new tax regime attractive. The income tax slab has been changed under the new tax regime from April 1, 2023. Basic exemption limit has been increased from Rs 2.5 lakh to Rs 3 lakh. Standard deduction is included in this. After this, now there is no tax on income up to Rs 7 lakh in the new regime.
