SUKANYA SAMRIDDHI YOJANA- HOW TO INVEST, BENEFITS & TAXABILITY

As a part of the ‘Beti Bachao Beti Padhao Campaign’, our Prime Minister, Sh. Narendra Modi launched a scheme called ‘Sukanya Samriddhi Yojana (SSY)’. The campaign was launched on 22^nd January 2015 by the Central Government to create awareness about ‘Save Girls, Educate the Girl Child’. In this article, we will answer all the questions relating to the SSY scheme as follows:

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana (SSY) aims at tackling issues related to girl child education and marriage. The scheme focuses on providing adequate funds to the parents of a girl child for proper higher education and for marriage expenses so that their girl child can have access to better educated and married life.

What are the tax benefits under Sukanya Samriddhi Yojana?

To promote investment in Sukanya Samriddhi Yojana, the Government provides the following tax incentives to the parents of a girl child:

• Investments made under Sukanya Samriddhi Yojana is eligible for deduction under section 80C subject to maximum of Rs. 1,50,000.
• Interest earned on the investments made in Sukanya Samriddhi Yojana is fully exempt from income tax.
• Maturity proceeds of Sukanya Samriddhi Yojana is exempt from tax. Similarly, any premature withdrawal from the Sukanya Samriddhi Account is also exempt from income tax.

Who can open the Sukanya Samriddhi Yojana Account?

Sukanya Samridhi Yojana Account can be opened by the parents or legal guardian of a girl child who has not attained the age of 10 years. In simple words, the parents or legal guardian of a girl child below 10 years of age are entitled to open SSY Account.

Who can operate the Sukanya Samriddhi Yojana Account?

Either the parents or legal guardian or the girl child (if she has attained the age of 10 years) may deposit the amount or operate the SSY Account. However, the account shall be mandatorily operated by the girl child after she attains the age of 18 years.

Who will be the beneficiary of SSY account?

The Girl child (resident Indian) in whose name the SSY account has been opened, shall be the beneficiary of the SSY account from the date of opening the account till the maturity or account closure.

Who can withdraw money from Sukanya Samriddhi Yojana Account?

The girl child in whose name the account has been opened can only withdraw the amount from the account on maturity and until the girl child attains the age of 18 years, her guardian/ parents can withdraw the amount from the account.

When can Sukanya Samriddhi Account be opened?

An account under Sukanya Samriddhi Yojana can be opened any time between the birth of the girl child till the time she attains the age of 10 years.

Where to open Sukanya Samriddhi Yojana account?

Sukanya Samriddhi Yojana account can be opened with a post office or with authorised branch of commercial banks.

How to open Sukanya Samriddhi Yojana account?

• Visit the bank or post office where you would like to open the SSY account and fill up the application form with relevant details and supporting documents.
• The account can be opened by making a deposit in cash or through cheque or DD. The minimum deposit is Rs. 250 and maximum upto Rs. 1,50,000.
• The bank or the post office will process your application and on successful KYC, the account will be opened and a passbook will be issued for the SSY account.

How many accounts can be opened under Sukanya Samriddhi Yojana Scheme?

• Only one account per girl child can be opened.
• Account can be opened for a maximum of two girl children in one family (including adopted children)

Note:

Accounts for more than 2 girl children are allowed in case of more than 2 girls being born in the first order of birth, or in a scenario of one girl child in the first order of birth, and twins or more than twins in the second order of birth.

What are the documents required to open a Sukanya Samriddhi Yojana Account?

For opening SSY account, the physical copies of the following documents may be required by the bank or the post office:

• Identity Proof (PAN) of Legal guardian or parents
• Address Proof (Aadhar/DL/Passport) of Legal guardian or parents
• Birth certificate of the girl child
• In the case of birth of multiple girl children in a single order of birth, medical certificate proof for the same
• Any other documents as prescribed by the bank or the post office

What is the minimum amount that can be invested in Sukanya Samriddhi Yojana account?

• Minimum deposit of Rs. 250 and maximum deposit of Rs. 1,50,000 in every financial year upto 15 years
• Deposits in excess of Rs. 250 can be made only in multiple of Rs. 100 subject to maximum cap of Rs. 1,50,000

How can the amount be deposited in Sukanya Samriddhi Yojana account?

You can make deposit in Sukanya Samriddhi Yojana account in any mode namely cash, cheque, demand draft or online transfer (NEFT/RTGS/IMPS)

What is the interest rate on Sukanya Samriddhi Yojana account?

Rate of interest on Sukanya Samriddhi Yojana account is as follows:

• Sukanya Samriddhi Yojana Interest Rate 2022-23

• In case a minimum deposit of Rs. 250 is not made in a financial year, the entire deposit in the account will be considered under default till the account is not regularised. In this case, interest will be paid at the rate as applicable to post saving bank account. However, the account will not be considered under default, if the default is on account of the death of the guradian who had opened the account.
• No interest is payable after the completion of the tenure of the Sukanya Samriddhi Yojana account i.e. after 21 years from opening of the account.
• Further, no interest accrues after the girl child becomes a non-citizen or a non-resident of India.

What is the tenure of the Sukanya Samriddhi Yojana account?

The Tenure of SSY account is 21 years from the date of account opening. On completion of tenure, the beneficiary (child in whose name the account is opened) can withdraw the balance including interest on submitting necessary proof to the bank or post office.

What are the purposes for which the balances in SSY account be withdrawal before the maturity?

The withdrawal from the SSY account is allowed for the purposes of higher education if the girl child has either attained 18 years or completed 10^th standard of school, for meeting the actual fee or other charges required at the time of admission. Please note that documentary proof by way of a confirmed offer of admission in an educational institution, or a fee slip shall accompany the application for withdrawal from the account.

Maximum withdrawal of an amount up to 50% of the balance in the SSY account at the end of the preceding financial year is permissible. Such withdrawal can be made in lump sum or in 5 installments.

Can the balance in SSY account be transferred?

Yes, the balance in SSY account can be transferred anywhere in India- from or to post office, from or to banks, and between post offices and banks. The transfer is allowed upon furnishing of proof of change of residence of either the guardian or the girl child.