In a world that is constantly evolving, where every child’s dreams deserve to flourish, the Sukanya Samriddhi Yojana (SSY) is as a beacon of hope.
Born out of the Government’s Beti Bachao, Beti Padhao campaign, this scheme stands as a pillar in the journey of securing a girl child’s future.
But what exactly is this initiative?
Let’s understand the key features of this yojana that every parent and guardian should know.
Sukanya Samriddhi Yojana is a completely tax-exempt product under the old tax regime i.e.
- Exempt from Tax While Investing: This scheme offers an oasis of tax benefits by allowing tax-free investments.
- Exempt from Tax on Interest Returns: As your investment grows, the interest earned is also shielded from the tax radar.
- Exempt from Tax at the Time of Maturity: When your investment matures, the returns remain untouched by taxation.
- Eligibility: The scheme is available for parents or legal guardians of a girl child from her birth until she attains the age of 10 years. A family can open only one account per girl child, and a maximum of two accounts are allowed in the case of twins/triplets.
- Age Limit: The account must be opened before the girl child turns 10 years old. However, if the account is opened before the age of 10, deposits can continue until 15 years from the date of account opening.
- Account Opening: The account can be opened in authorized post offices and designated public sector banks across India. It requires the submission of necessary documents, including the birth certificate of the girl child and KYC documents of the parent/legal guardian.
- Deposit Tenure: The tenure of the account is 21 years from the date of opening or until the girl child gets married, whichever comes first. Partial withdrawals can be made once the girl child reaches the age of 18 years, but only for specific purposes like higher education.
- Deposit Amount: The minimum initial deposit amount to open the account is ₹250. Subsequent deposits can be made in multiples of ₹100, with a minimum annual deposit of ₹250 and a maximum of ₹1.5 lakh in a financial year.
- Interest Rate: The interest rate for Sukanya Samriddhi Yojana is announced by the Government of India on a quarterly basis and is generally higher than most other savings schemes. The interest is compounded annually.
- Tax Benefits: Deposits made under the scheme are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum limit of ₹1.5 lakh per financial year.
- Account Management: The account can be operated by the parent/legal guardian on behalf of the girl child until she reaches the age of 18 years. After that, the girl child can manage the account herself.
- Premature Closure: The account can be closed prematurely in exceptional cases, such as the unfortunate demise of the girl child. However, certain conditions may apply, and penalties might be levied.
Sukanya Samriddhi Yojana is a useful tool for parents to secure a daughter’s future. While this scheme offers benefits, remember that it is important to understand the rules and guidelines properly before you invest.