Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana: All You Need To Know

The Ministry of Finance (Department of Economic Affairs) has issued two important notifications regarding the Sukanya Samriddhi Account.

Firstly, through their E-Gazette Notification dated 12th December 2019, G.S.R. 912(E), the Central Government has officially repealed the Sukanya Samriddhi Account Rules, 2016, which were previously published under G.S.R. 323(E) dated 18th March 2016. This repeal is effective immediately.

Secondly, the Ministry of Finance (Department of Economic Affairs) has introduced a new scheme named the Sukanya Samriddhi Account Scheme, 2019, as notified in their E-Gazette Notification dated 12th December 2019, G.S.R. 914(E).

Key Features of the Scheme:

Enjoy an attractive interest rate of 8%, which is fully exempt from tax under section 80C.
Start investing with a minimum of Rs. 250 in one financial year.
Maximize your savings with a maximum investment limit of Rs. 1,50,000 in one financial year.
Avoid penalties by depositing at least Rs. 250 in any financial year; failure to do so incurs a penalty of Rs. 50.
Flexible deposit options available until completion of 14 years from the date of opening the account.
Watch your savings grow, as the account matures on completion of 21 years from the date of opening, unless the account holder gets married before that.
Keep track of your savings with a passbook issued to customers.
Withdraw funds for higher education or marriage needs after attaining 18 years of age.
Close the account if the beneficiary gets married before maturity.

This scheme offers a compelling combination of high interest rates, tax benefits, and flexibility in investment, ensuring that your savings are not just secure but also contribute towards important life goals such as education and marriage.

Updated Guidelines for Opening Accounts:

The account may be initiated by either the natural or legal guardian on behalf of a girl child who is below 10 years of age.
Each depositor is permitted to establish and manage only one account in the name of a girl child, in adherence to the scheme regulations.
The natural or legal guardian is permitted to open accounts for up to two girl children under their care.

Benefits of Sukanya Samriddhi Yojana (SSY)

Affordable Minimum Deposit: Begin your SSY account with a low minimum deposit of Rs. 250 per fiscal year, making it accessible to individuals from all economic backgrounds. You can contribute up to Rs. 1.5 lakh per fiscal year according to your financial capability. Even if you miss a year of deposit, a nominal penalty of Rs. 50 will be charged on the unpaid minimum of Rs. 250, ensuring continuity of the account.
Attractive Interest Rate: Currently, SSY offers an appealing interest rate of 8.2% per annum compounded (as of Q3 FY 2023-24), which is among the highest rates available for small savings schemes.
Tax Benefits: Enjoy full tax deduction on the principal invested, up to Rs. 1.5 lakh per year, under Section 80C of the Income Tax Act. Additionally, both the accrued interest and the maturity amount are tax-free, providing significant tax benefits to investors.
Long Tenure: Secure your daughter’s future with a 21-year maturity period or until her marriage after she turns 18, whichever comes earlier, ensuring financial stability for her future endeavors.
Educational Expenses Covered: Withdraw up to 50% of the account balance as of the previous financial year’s end to cover educational expenses for your girl child. Simply provide proof of admission to avail of this benefit.
Guaranteed Returns: With SSY being a government-backed scheme, investors can rest assured of guaranteed returns upon maturity, offering peace of mind and financial security.
Convenient Transfer: Easily transfer your SSY account from a post office to a bank or vice versa, anywhere in India, ensuring convenience and flexibility in managing your investments.

Tax Benefits of Sukanya Samriddhi Yojana:

Investments made in SSY qualify for deductions under Section 80C of the Income Tax Act, with a maximum cap of Rs. 1.5 lakh.
The accrued interest, compounded annually, is exempt from tax under Section 10 of the Income Tax Act.
Upon maturity or withdrawal, the proceeds from the SSY account are also exempt from income tax.