With the financial year 2025–26 approaching its end, March 31 has become an important deadline for investors in tax-saving schemes.
People who have accounts in the Public Provident Fund (PPF), National Pension System (NPS), and Sukanya Samriddhi Yojana (SSY) must deposit the required minimum amount in their accounts.
If the minimum deposit is not made before the deadline, the accounts may become inactive or frozen, which can restrict withdrawals, loans, and other benefits.
Minimum Deposit Rules for PPF, SSY, and NPS
A PPF account requires a minimum deposit of ₹500 every financial year. If the account holder fails to deposit this amount, the account becomes inactive, and loans or withdrawals are not allowed.
The account can be reactivated later, but the account holder must pay a ₹50 penalty for each year of default, along with the minimum deposit for those years.
The Sukanya Samriddhi Yojana (SSY), which is designed to secure the financial future of daughters, also has a minimum annual investment requirement.
Under this scheme, account holders must deposit at least ₹250 every financial year. If the minimum amount is not deposited, the account is treated as in default.
To reactivate it, the account holder must pay a ₹250 penalty along with ₹50 for each year of default.
The National Pension System (NPS) also requires a minimum annual contribution. Investors must deposit at least ₹1,000 every year in the NPS Tier-1 account.
If the required amount is not deposited, the account may be frozen, and the linked Tier-2 account may also be affected. To reactivate the account, the investor must pay the pending balance along with a penalty of ₹100.
Tax Benefits of These Schemes
One of the biggest advantages of investing in these schemes is tax savings. Under the old tax regime, investments in PPF, SSY, and NPS qualify for a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act.
In addition, investments in NPS provide an extra tax deduction of up to ₹50,000.
Because of these benefits, investors are advised to deposit the minimum required amount in their accounts before March 31, 2026, so that their accounts remain active and they can continue to enjoy the available tax benefits.
