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
- Rate of interest of 7-8% per annum which is more than any other government scheme
- Investments are exempt from income tax under section 80C of the Income Tax Act
- The opening amount for the account is INR 1,000. Thereafter multiples of INR 100 can be deposited in the account with a minimum of INR 1,000 per year
- The maximum limit for deposits in the account is INR 1,50,000 per year
- If a minimum of INR 1000/- is not deposited in a financial year, an account will be discontinued and can be revived with a penalty of INR 50/- per year along with the minimum amount required for a deposit for that year
- If the account is not closed after maturity, a balance will continue to earn interest as specified for the scheme from time to time
- Normal Premature closure will be allowed after completion of 18 years /provided that girl is married. The maturity period of the account is 21 years from the date of opening the account
Who is Eligible to Open an Account under Sukanya Samriddhi Yojana?
The following are the eligibility criterias for openining an account:
- Account under Sukanya Samriddhi Yojana has to be opened under the name of girl child
- The parents or legal guardians can open the account in the name of the girl child
- At the time of opening the account the girl has to be below the age of 10
- One cannot open multiple Sukanya Samriddhi accounts for the same girl child
- Two accounts for two girls can be opened in one family
- The girl child has to be a resident Indian
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:
- Account Opening Form
- Birth Certificate of Girl Child
- Identity Proof for both Girl Child & Parent or Legal Guardian
- Address Proof of depositor
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.
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.
The Sukanya Samriddhi account will turn inactive in case the requirement of the minimum annual deposit of Rs 1,000 is not met.
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.
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.
No, currently you are not allowed to avail a loan against your SSY balance.
Yes, a penalty of INR 50 will be charged if you miss contributing the minimum amount of INR 250 in a financial year.
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.