4 schemes that you need to invest to save from taxes before March 31

By Team Newsable | First Published Mar 25, 2022, 10:32 AM IST

The deadline for tax-saving investments for fiscal years 2021-22 is March 31, 2022. If you do not make the tax-saving investments and expenditures by the end of this month, your tax burden for fiscal year 2021-22 will be increased.

Many tax-advantaged investment schemes need participants to make minimum contributions each fiscal year in order for such accounts to remain operational. Some of the schemes are as follows:

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1. Public Provident Fund
The Public Provident Fund (PPF) programme is a long-term investment option that provides an excellent rate of return on investment. The interest and refunds are not taxable under the Income Tax Act. In a fiscal year, the minimum yearly contribution for the PPF account is Rs 500. The deadline for making this payment for the current fiscal year is March 31, 2022. If an account holder fails to contribute by March 31, 2022, they must pay a Rs 50 penalty for the previous year as well as a Rs 500 arrear subscription for that year.

2. NPS
NPS is a voluntary programme in which a subscriber can contribute at any time throughout the fiscal year and adjust the amount he wishes to set away and save each year. Tier-I NPS account holders must contribute a minimum of Rs 1,000 every fiscal year, as per existing guidelines, otherwise the account would go dormant.

3. PMAY Housing Subsidy
The Ministry of Housing and Urban Poverty Alleviation (MoHUPA) established the Credit Linked Subsidy Scheme (CLSS) in June 2015 as part of the Pradhan Mantri Awas Yojana (PMAY- Urban)- Housing for All project. The third and final phase of the PMAY plan concludes on March 31, 2022.

4. Sukanya Samriddhi Yojana
Sukanya Samriddhi Account is a government-backed savings plan aimed at the parents of female children. The programme encourages parents to save for their female child's future education and marriage expenditures. A minimum deposit of Rs 250 is required in a financial year to keep your account open. If the minimum deposit is not made in a fiscal year, the account will be inactive.

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