Sukanya Samriddhi Yojana - Features, Registration and Benefits

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Hiral Vakil

Income Tax
Tax Savings & Deductions
Last updated on October 11th, 2021

Sukanya Samriddhi Yojana is aimed at the betterment of girl child in India. It is a savings scheme to cover girl child education and wedding expenses. The scheme offers income tax deductions on savings and fixed interest rates against the deposits.

Features of Sukanya Samriddhi Yojana

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Who is Eligible to Open an Account under Sukanya Samriddhi Yojana?

The following are the eligibility criterias for openining an account:

How to open an Account for Sukanya Samriddhi Yojana?

An account can be opened at any of the authorized banks or at any post office. Form to open an account is available at all eligible bank branches and post office branches.

Documents required to open Sukanya Samriddhi Account:

What are the Tax Benefits available under SSY?

The investments made under Sukanya Samriddhi Yojana fall under the EEE (Exempt, Exempt, Exempt) Category. This means that contribution up to INR 1.5 lakh is deductible under section 80C, the interest that is earned as well as the maturity amount all are exempted from tax.

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Transfer of Sukanya Samriddhi Account

One of the major benefits of SSY is the ease of convience. One can transfer their SSY account from one part of the country to another without any hassel. One only needs to fill out and submit the transfer request form to the concerened post office or bank.


How can my Sukanya Samridhdhi Yojana account get deactivated/inactive?

The Sukanya Samriddhi account will turn inactive in case the requirement of the minimum annual deposit of Rs 1,000 is not met.

How many times can I deposit in Sukanya Samriddhi Yojana?

The amount deposited in Sukanya Samriddhi account should not exceed Rs. 1.5 lakhs per year. However, the total number of deposits that you have made doesn’t matter either in a month or financial year.

Can Sukanya Samriddhi Yojana account be closed prematurely?

Yes, it is possible. Following are the circumstances where your account can be closed prematurely:
– It can be closed prematurely on the basis of marriage, change of citizenship and country of residence, only after maintaining deposits for 5 years. 
– It can be prematurely closed in case the account is causing a financial burden on the girl child or there is an urgent medical requirement or in instances of death of a parent or guardian.

Am I allowed to take a loan against the amount in Sukanya Samriddhi Yojana?

No, currently you are not allowed to avail a loan against your SSY balance.

If I forget to pay the minimum amount will there be a penalty charged?

Yes, a penalty of INR 50 will be charged if you miss contributing the minimum amount of INR 250 in a financial year.

What will happen in case of an unforseen death of the depositer?

In case of unforseen death of the depositor, the account is either closed and the accumulated amount is given to the family or girl child. Or, the account is kept running till the maturity period and the deposited amount continues to earn interest till the girl child attains the age of 21 years.

Got Questions? Ask Away!

  1. Hey @sushil_verma

    There are a wide range of deductions that you can claim. Apart from Section 80C tax deductions, you could claim deductions up to INR 25,000 (INR 50,000 for Senior Citizens) buying Mediclaim u/s 80D. You can claim a deduction of INR 50,000 on home loan interest under Section 80EE.

  2. Hey @Dia_malhotra , there are many deductions that you can avail of. Your salary package may include different allowances like House Rent Allowance (HRA), conveyance, transport allowance, medical reimbursement, etc. Additionally, some of these allowances are exempt up to a certain limit under section 10 of the Income Tax Act.

    For eg,

    • Medical allowance is exempt up to INR 15,000 on a reimbursement basis.
    • Children education allowance is exempt up to Rs. 200 per child per month up to a maximum of two children.
    • Conveyance allowance is exempt up to a maximum of Rs. 1600 per month.

    Tax on employment and entertainment allowance will also be allowed as a deduction from the salary income. Employment tax is deducted from your salary by your employer and then it is deposited to the state government.

  3. The benefit Section 80EEB can be claimed by individuals only. An individual taxpayer can claim interest on loan of an electric vehicle of up to INR 1.5 lacs u/s 80EEB. However, if the electric vehicle is used for the purpose of business, the vehicle should be reported as an asset, loan should be reported as a liability and the interest on loan can be claimed as a business expense irrespective of the amount. (We have updated the article with the changes).

    Thus, if you have a proprietorship business, you should claim interest amount as a business expense only if the vehicle is used for business purpose. However, if it is used for personal purpose, you can claim deduction of interest u/s 80EEB in your ITR since you would be reporting both personal and business income in the ITR (under your PAN).

    As per the Income Tax Act, the deduction under Section 80EEB is applicable from 1st April 2020 i.e. FY 2020-21.

  4. Hey @Sharath_thomas , we have updated the content according to the appropriate assessment year. Thanks for the feedback. :slight_smile:

  5. Hey @shindeonkar95

    In case of capital gain income (LTCG/STCG), transfer expenses are allowed as deduction, except STT.

    However, in case of business income (F&O, intraday), all expenses incurred for the business (including STT) are eligible to claim deduction in ITR.

    Hope, it helps!

  6. Hello,

    Is it possible to claim deductions under S. 80CCF for Infra bonds bought in the secondary market and held to maturity?

    There were a number of 10 year infra bonds issued in the 2010- 2013 period, which will start maturing soon. These are all listed on the exchanges (although hardly any liquidity or transactions in them). If I were to buy some of these bonds in the open markets and hold them in my demat to maturity (<3 years), is it possible to claim tax deductions (upto 20k per year) under 80CCF for buying?

    I couldn’t find anything on this. Any help is appreciated.

  7. Hello @Veejayy,

    Yes you can claim deduction under 80CCF for investment made in specified infrastructure and other tax saving bonds bought in the secondary market and held to maturity.

    Deduction under Section 80CCF can be availed only through investment in certain tax saving bonds, issued by banks or corporations after gaining permission from the government which shall be restricted upto 10,000 per year.

    These bonds are generally long term bonds, having tenure of more than 5 years with a lock in period of 5 years in most of the cases. These bonds can be sold after the lock in period!

    Also, interest earned on these bonds will be taxable.

    Hope this helps!

  8. Hi, I need to file my income tax for FY21, I am using Quicko platform for filing, I wanted to confirm if the ELSS investment amount for the FY21 is to be added in the section 80C, since I already the amount of Rs30,072 , should I add my ELSS amount to this existing amount and submit the total

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