If you have invested in schemes like Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY), then deposit the minimum amount before the start of the new financial year, otherwise your account may become closed (inactive).
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The first week of the month of March is about to pass. This month is the last month of the financial year 2023-2024. After this the new financial year will start. You will definitely have to complete some work before the new financial year. If you have invested in schemes like Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY), then deposit the minimum amount in it by 31st March, otherwise your account may be closed (inactive). Although it is not that you cannot reopen a closed account later, but for this you will have to pay unnecessary penalty. Therefore, it is better that this work is completed on time.
What are the rules regarding PPF and Sukanya Samriddhi?
At least Rs 500 have to be deposited annually in PPF and at least Rs 250 in Sukanya Samriddhi Yojana. If the minimum amount is not deposited, your account is closed. If these accounts are closed, then to reopen them, minimum amount per year (Rs 500 for PPF and Rs 250 for Sukanya) + Rs 50 default fee has to be deposited on every year basis.
That means, if you do not deposit money for two years, then you will have to pay a fine of Rs 100 for two years based on the minimum balance of two years and Rs 50 per year. Not only this, in case of closure of PPF and Sukanya Samriddhi accounts, you will neither be able to make partial withdrawals from them nor will you be able to avail the benefit of loan facility on PPF.
How much interest on PPF and SSY
Let us tell you that at present 7.1% interest is being given on the amount deposited in Public Provident Fund and 8.2% interest is being given on Sukanya Samriddhi Account. In the PPF scheme, income tax exemption is available on all three returns, maturity amount and interest.
Accounts can be opened for 15 years, which can be further extended in blocks of 5 years. Whereas tax benefit can be availed in Sukanya Samriddhi Account under Income Tax Act 80C. Both these accounts can be opened in the post office or authorized branch of the bank. SSY account can be opened after the birth of a girl child before she turns 10 years of age.
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