New Delhi: People who have invested in Public Provident Fund (PPF) or Sukanya Samriddhi Yojana (SSY) schemes should carry out this essential financial transaction by March 31, 2026. The rules state that, it is mandatory to deposit a minimum amount every financial year to keep PPF and SSY accounts active. If a depositor fails to do so, the account may become ‘inactive’ or ‘default’.
Public Provident Fund (PPF)
PPF is considered to be one of the most reliable long-term savings schemes in India, which is controlled and managed by the Centre. The interest earned PPF deposits is also tax-free. According to government rules, ever depositor is mandated to deposit at least Rs 500 every financial year. Currently, the government is offering 7.1% annual interest on it, which, with the power of compounding, a huge corpus can be created. If a PPF/Sukanya Samriddhi account holder fails to deposit the minimum amount by March 31, the could be frozen. To reactivate it, the account holder will be required to pay the pending amount for that year but also a penalty of Rs 50 per year.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana is aimed at securing the future of the girl child. The scheme rules makes it mandatory for a depositor to deposit a minimum of Rs 250 in every financial year. At present, the government is offering an attractive interest rate of 8.2% on this scheme. If a depositor fails to deposit the minimum amount by 31 March 2026, the account would be placed in the default category. To reactivate it, a penalty of Rs 50 along with the minimum deposit will have to be paid.
Both PPF and Sukanya Samriddhi Yojana are considered to be safe and secured as these provide guaranteed returns. Both the long term financial schemes provide ‘tax benefits’. The Principal amount both these schemes qualifies for tax exemption under Section 80C of the Income Tax Act. A tax deduction on investments of up to Rs 1.5 lakh annually can be claimed.