Make sure to deposit the minimum amount before March 31st, or your PPF-SSY account will be closed! Understand the penalties and rules..
If you have an account in the Public Provident Fund (PPF) or Sukanya Samriddhi Yojana (SSY), this news is going to be very important for you. There's not much time left before the financial year 2025-26 ends, and if you haven't deposited the minimum amount in these accounts this year, be sure to do so before March 31, 2026. Failure to do so could result in your account becoming inactive.
Question: Why is March 31st required for PPF and SSY?
These two government small savings schemes require a minimum investment every year.
The purpose is to ensure the account remains active.
If the required amount is not deposited, the account may be closed.
A penalty may also be imposed to reactivate it.
Question: How much money is required to be deposited in PPF?
The Public Provident Fund (PPF) is one of India's most popular long-term savings schemes.
Investments in this are considered safe and also offer tax benefits.
To keep a PPF account active, it is necessary to deposit at least ₹500 each financial year.
If this amount is not deposited, the PPF account may become default or inactive.
The government provides 7.1% annual interest on PPF, which increases with compounding every year.
It should be noted that if the account becomes inactive, you may have to pay a penalty of approximately ₹50 each year to reactivate it, along with a minimum deposit for that year.
Question: What are the rules under the Sukanya Samriddhi Scheme?
The Sukanya Samriddhi Yojana (SSY) is a government scheme specifically launched to secure the future of daughters.
SSY also requires a minimum annual investment.
If you have an account under the Sukanya Samriddhi Yojana, you must deposit at least ₹250 each year.
If you don't deposit this amount, your account may default.
In case of default, you may have to pay a penalty of ₹50 to reactivate it.
This scheme currently offers an interest rate of approximately 8.2% per annum, which is considered higher than many other safe investment schemes.
Question: Why is it important to deposit money on time?
Many people forget to invest in small savings schemes due to their busy schedules throughout the year. However, if you don't deposit money by the stipulated time, your account may be closed, potentially jeopardizing your investment. If the account is closed, the process of reactivating it can be lengthy, and you may incur additional charges. Therefore, it is best to deposit the minimum amount before March 31st.
Question: Are there any tax benefits in these schemes?
Both PPF and Sukanya Samriddhi Yojana are schemes that offer income tax exemptions upon investment.
Deposits in these schemes are tax-exempt under Section 80C of the Income Tax Act.
Under this, you can claim a tax deduction on investments up to ₹1.5 lakh annually.
In simple and clear terms, investing in these schemes can reduce your taxable income and provide tax relief.
Question: Why are PPF and Sukanya Samriddhi Yojana so popular?
Both these schemes are considered safe investment options in India.
This is because investments in these schemes are guaranteed by the government.
Good long-term returns
Tax exemption benefits
Safe investment options
Wealth grows through compounding
For these reasons, millions of people invest in these schemes every year.
Remember the deadline
Yes, if you have a PPF or Sukanya Samriddhi Scheme account and haven't invested yet this year, be sure to deposit the minimum amount before March 31, 2026. Yes, a small investment can keep your account active and secure big future gains. So remember, you can keep your account active by depositing just ₹500 (PPF) and ₹250 (SSY). So, don't wait for the deadline and complete your investment on time.
Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
