Sukanya Samriddhi Yojana scheme was launched by the government in 2015 under the campaign “Beti Bachao Beti Padhao”. It is a government back scheme that's why safe investment.
This
scheme was launched to encourage the girl child to grow in life. Under this
scheme parents / guardians of girl children can invest money for the future of
girls.
Girls
must be below 10 years of age at the time of opening the account. The rate of
interest for the June 2020 quarter was 7.6% per annum and it may change from
quarter to quarter.
What are the features of the Sukanya Samriddhi Yojana scheme?
Before
investing in the Sukanya Samriddhi Yojana scheme one should know its
features. The following are the important features of the scheme are:
Amount of deposit
You
have to invest minimum rupees 250 per annum and it can be
maximum rupees 150000 per annum means you have to invest at least rupees
250 every year to keep your account active.
If
you do not deposit at least rupees 250 per annum your account
will be deactivated and then you have to pay a penalty for reactivating your
account.
It
is not necessary that you have to invest only once in a year. It is your choice
to make any number of deposits in a year.
One account for one girl child
You
can open only one account for one child maximum for two girls.
More
than two accounts can also be opened in a family, in the case of twin or
triple girl’s means:
- If twin girls are born after the first girl child then the 3rd girl account can be opened.
- If a triple girl child is born at first then the third account can also be opened.
- But if a third girl child is born after the twin girls then the 3rd girl account cannot be open.
Lock in period
There
is a lock-in period of 21 years in Sukanya Samriddhi Yojana. You have to
keep your deposit for 21 years.
Tenure of deposit
Your
account will mature after 21 year of completion from opening of the
account but it does not mean that you have to deposit the amount for 21 years.
You
need to deposit the amount only for 15 years from opening of account
and thereafter you do not need to deposit. Interest on investment continuously
calculated after 15 years.
Transferring the amount
In
case of change in residence address then you can easily transfer your account
within India by just depositing certain documents like residence proof
& transfer request etc.
What are the various tax benefits of Sukanya Samriddhi Yojana?
Investment
in Sukanya Samriddhi Yojana provide various tax benefit as follow:
- Investment amount in Sukanya Samriddhi Yojana is eligible for tax deduction of maximum rupees 150000 under section 80c of Income Tax Act 1961.
- The whole interest received on this investment is exempt from income tax.
- Withdrawal from account is also exempt from any tax.
Because
of the various text benefits this investment always remains in the eye of
investors. Along with secure futures for girls also provides tax benefits.
What are the
eligibility criteria for investment in Sukanya Samriddhi Yojana?
Before
investing in Sukanya Samriddhi Yojana one should know the eligibility criteria:
Eligibility criteria
- At the time of opening the account the girl child must be below the age of 10 years. If the age of the girl child is above the age of 10 year then she becomes ineligible for investment.
- You can open only one account for one girl child. Maximum of two girls' accounts per family is allowed.
- In the case of twin or triple girls, if twin girls are born after the first girl child then third account can be opened and also if triple girls child is born at first then third account can be opened but if third girl child is born after twin girls then third count cannot be open.
- Minimum investment should be rupees 250 per year and maximum rupees 150000 per annum.
- Bank account can be opened in the name of a girl child by her parents or legal Guardians.
What is the withdrawal procedure of Sukanya Samriddhi Yojana?
You
can withdraw the balance in account at maturity or partially or premature.
Withdrawal on maturity
On
completion of 21 years from opening the account you can withdraw your fund
along with interest. Withdrawal from this account exempt from tax. You just
need to complete the documents requirement of the bank or post office like
application for withdrawal, ID proof etc.
Withdrawal partially
In
the event of higher education or marriage of girl child you can
withdraw partial amount from your account balance but you need to fulfill the
following condition for partial withdrawal:
- You can partially withdraw up to 50% of the balance.
- Before making partial withdrawal a girl child must be 18 years old or more.
- Partial withdrawal can be made for the reason of Higher Education must have complete 10th standard.
Premature closure of account
Account
can be closed prematurely i.e. before completion of 21 year only in the
following case:
- If the girl child is getting married after turning the age of 18 years.
- If the residential status of a girl child is changed.
- In the case of the death of a girl child.
- In case the amount required for medical treatment of a girl child.
In
order to premature withdrawal you need to submit certain documents to the
bank or post office as the case may be.
What is the
procedure of opening accounts for Sukanya Samriddhi Yojana?
You
can open an account in Sukanya Samriddhi Yojana by visiting your nearest post
office or Bank. Both banks and post offices provide this facility.
You
need to fill the Sukanya Samriddhi Yojana (SSY) application form. You can
also download application form online. You have both the option of filling
application form online or offline.
In
application form you need to fill the following field like:
- Name of girl child
- Name of parents / guardian
- Birth date of girl child
- KYC of parent or guardian
- Permanent address proofs
- Deposit amount
- Other documents as required by bank or post office
Then
after checking the eligibility criteria bank or post office as the case may be
may allow you to open the account and start the investment.
What are the benefits of investing in Sukanya Samriddhi Yojana?
This
scheme is very popular and preferred by investor as a same provide various
benefit which are listed below:
Small investment
This
is the most important benefit i.e. you can invest in account with a small
amount of rupees 250 per annum. This amount also fits in the budget of low
income families who cannot afford large investment but they want their girl
child future to be secure.
Premature closure of account
In
the following case you can premature close your account even before the expiry
of 21 year:
- If girl is getting married after turning the age of 18 years
- If the residential status of the girl child changed.
- In case of death of girl child
- In case of the amount required for medical treatment of a girl child.
Triple tax benefit
This
facility along with securing the future of girl child also provide three tax
benefit which are:
- The amount invested is allowed for deduction upto rupees 150000 under section 80c of Income Tax Act 1961.
- Withdrawal from investment is fully exempt from tax.
- Interest earned on this investment is also exempt from the income tax.
Best interest rate
This
investment provided the best interest rate like for the March 2020 quarter
interest rate was 8.4% and for June 2020 quarter was 7.6%. These interests are
fixed by the government and change quarterly.
Conclusion
Sukanya Samriddhi Yojana (SSY) is a government backed scheme which provides guarantee for return and amount needed for future for girls child's. You can use this fund for marriage, higher education for girl children. This investment also provides various tax benefits. You must think about investing in Sukanya Samriddhi Yojana (SSY).
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