Investors in small savings schemes such as Public Provident Fund (PPF), sukanya Samriddhi Yojana, and NPS (National Pension Scheme) need to be aware of an important update. If you have accounts in any of these schemes and haven't deposited money in them yet in this financial year, you have until march 31 to keep the accounts active. Failing to make the minimum annual deposit by this deadline could result in account freezing, penalties, and the loss of tax-saving benefits.

The last date for the minimum deposit in PPF, NPS, and sukanya Samriddhi Yojana is march 31 of each financial year. According to the Public Provident Fund Rules 2019, PPF account holders are required to deposit a minimum of Rs 500 in the account every financial year. Failure to meet this requirement will result in the discontinuation of the PPF account.

If the account is closed due to non-payment of the minimum deposit, account holders will lose access to loan and partial withdrawal facilities. Additionally, they won't be able to open another account in their name without completely closing the discontinued account. To reopen a closed PPF account, a penalty of Rs 50 per year must be paid, along with a deposit of Rs 500 as the annual minimum deposit.

Similarly, sukanya Samriddhi Yojana requires a minimum deposit of Rs 250 every year. Failure to deposit this amount will result in the account being considered in default. To reopen the account, a penalty of Rs 50 per year must be paid, along with a minimum deposit of Rs 250 annually.

For tax-saving benefits under Section 80C of the Income Tax Act, deductions of up to Rs 1.5 lakh are available on investments in PPF and sukanya Samriddhi Yojana. To take advantage of this deduction and reduce the tax burden, it is essential to invest by march 31, 2024. Failure to invest by this date will result in the inability to claim deductions in that financial year.

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