With the fiscal year ending on March 31, 2026, it’s time to check your savings. If you have a Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), or National Pension System (NPS) account, making your minimum deposit is not just a formality, it’s essential. Missing it could make your account inactive and affect your tax benefits. So, before the year wraps up, make sure your contributions are up to date.
SSY account holders, set up to save for a girl child, must Missing the deposit will result in the account being classified as defaulted.
To reactivate a defaulted SSY account, the account holder must pay Rs 50 per defaulted year, along with the minimum contribution of Rs 250 for each missed year.
PPF account holders must deposit at least Rs 500 in their account every financial year. Missing this minimum deposit will make the account inactive.
An inactive PPF account cannot be used for loans or withdrawals, which are available from the third year of the account. However, the account can be revived by paying a penalty. For every year of default, a Rs 50 fee is charged in addition to the minimum deposit. This means an account holder must pay Rs 550 for each missed year to reactivate the PPF.
Many individuals use NPS accounts to build retirement savings while also claiming tax benefits. Under the old tax regime, contributions up to Rs 1.5 lakh qualify for tax deduction under Section 80C of the Income Tax Act, 1961. Additionally, an extra deduction of Rs 50,000 is available under Section 80CCD(1B).
NPS contributions are eligible under both old and new tax regimes, making it an important investment for long-term retirement planning.
Simply put, the subscribers of PPF, SSY, and NPS should check their accounts and ensure that minimum deposits are made before March 31, 2026. Meeting these deadlines not only keeps accounts active but also helps in continuing to enjoy tax benefits and avoid penalties.