Deadline Alert: Keep Savings Active!
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.