July 22, 2021

The Sukanya Samriddhi is the saving scheme, especially launched for the financial protection of the  girl child which has been in conjuction with the social initiative “Beti Bachao Beti Padao”campaign initiated by the Govt. of India in the year 2015. A Sukanya Samridhhi Yojna offers a wide range of benefits which would ensure the assured financial security for the future of the girl child. In most parts of India, it is a considered that the girl child is a burden on the family. With this special scheme, the objective is very clear that if the parents do a proper financial planning from the time the girl child is born, it would provide financially secured future for their daughters. This scheme is launched to accumulate a corpus within a span of years which could help the parents to provide quality education to the child and/or sponsor the expenses of her marriage.

Security of the Girl Child along with TAX BENEFITS:

The Sukanya Samriddhi Yojna allows you to secure the future of your daughter by contributing a regular amount towards the Sukanya Samriddhi Account(SSA). Most of the middle income individuals invest in any kind of investment schemes is to get the tax benefits and reduce their tax liability. One of the greatest advantages of a Sukanya Samriddhi Account is allowing tax benefits in the following manner:

  • Tax Free Interest

    The interest accrued on this scheme is completely exempted from the taxes. Time to time accrual of the interest amount is completely tax free and does not attract any tax burden, allowing the depositor to enjoy the accumulated growth of the money without coming under the scanner of tax.

Sukanya Samriddhi Account tax benefits

Who can Open the Account?

A Sukanya Samridhi Account can be opened any time before the girl child turns 10 by the guardian of the girl child.Guardian under the scheme can be defined as:

  • Father or Mother
  • In case parents are not alive or is incapable of acting, a person entitled under the law for the time being in force to have the care of the property of the minor.
  • Under the Revised Rules Guardian Includes Legal Guardian too, Which means Parents of adopted Child adopted are also Guardian under the revised rules.

How many Accounts can be opened?

The depositor is not supposed to open more than one account in the name of a girl child. Depositor is allowed to open one account each for maximum two girls. Opening of two accounts for a single girl child is not allowed.

How much Amount can be Deposited?

The minimum amount which can be deposited is Rs 1000 and the maximum amount which can be deposited is Rs 1.5 Lakhs. Over and above the minimum amount of Rs 1,000, denominations in the multiple of Rs 100 can be deposited in a given financial year up to the maximum of Rs 1.5 Lakhs. The contributions in the account can be done till the completion of 15 years from the date of commencement of the account.

What are the Interest Rates Earned on This Scheme?

The government has made the scheme popular by offering higher interest rates on this scheme so that the parents can put more money into the Sukanya Samriddhi Account for the financial security of the girl child. The interest is compounded yearly. The current year’s interest rate for the current year is 8.3%. No other investment scheme backed by government offers such high interest rates along with offering the financial security of the girl child’s future.

Interest Rates under SSY for past years:

Financial Year Interest Rate
2017-18 (Q2) 8.3%
2017-18 (Q1) 8.4%
2016-17 (Q4) 8.5%
2016-17 (Q2) 8.6%
2016-17 (Q1) 8.6%
2015-16 9.2%
2014-15 9.1%

Who Receives the Maturity Proceeds?

On maturity of the Sukanya Samriddhi Account, the accumulated contribution accompanied with accrued interest will be paid directly to the girl child who is the account holder. It ensures financial independence and security, to the girl child and allow her to take her independent decisions. The special feature associated with this scheme is that even at the time of maturity, if the account holder wishes to continue the account without closing it, one can do that along with getting the applicable interest rate till the final closure of the account.

What are the Documents which are Needed to Open This Account?

Following are the documents which are needed to open the Sukanya Samriddhi Account:

  • SSY Account Opening Form
  • Birth documents of girl child (Birth certificate)
  • Address proof of the Guardian
  • Identity proof of the Guardian
  • 3 Photos of of the Guardians and 3 photos of the child
  • Pan card and Aaadhar card copies of of the Guardians

Other Key Points Associated with Sukanya Samridhhi Yojna

  • This scheme is not applicable for the NRI’s
  • The Sukanya Samriddhi account  can be transferred anywhere in India
  • One can use Cash, Cheque, Demand Draft, as a mode of deposit
  • The account allows 50% withdrawal once the girl attains 18 years to sponsor her higher education
  • A girl child can operate her account on completing 10 years,
  • Changing of the guardian once the account is opened is not possible and is allowed only under special circumstances like death of an existing guardian.

Final Word

The Sukanya Samriddhi Yojna is a step forward to encourage the initiative of “Beti  Bachao, Beti Padao” social initiative. It ensures the financial independence of the daughters of India and allow them to accomplish their dreams without any financial scarcity. The scheme offers bundle of benefits ranging from higher interest rates to the tax deductions on the contributions. It is one of the finest schemes where in the middle income or lower income group of India can be benefitted the most by availing tax benefits along with securing the future of the girl child leading to their empowerment.

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