All About Sukanya Samriddhi Yojna

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.

Table Content

  • Security of the Girl Child along with TAX BENEFITS:
  • Tax Exemption on the Contributions
  • Tax Free Interest
  • Tax Free Maturity Proceeds
  • Who can Open the Account?
  • How many Accounts can be opened?
  • How much Amount can be Deposited?
  • What are the Interest Rates Earned on This Scheme?
  • Interest Rates under SSY for past years:
  • Who Receives the Maturity Proceeds?
  • What are the Documents which are Needed to Open This Account?
  • Other Key Points Associated with Sukanya Samridhhi Yojna
  • Final Word
  • Related posts:

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 Exemption on the Contributions

    The amount contributed towards the scheme avails tax deduction up to the maximum amount of Rs 1.5 Lakhs under Section 80 C of the Income Tax Act,1961.

  • 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.

  • Tax Free Maturity Proceeds

    The maturity amount received on the closure of the account is completely exempted from the taxes under the Income Tax Laws.

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%