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Sukanya Samriddhi Yojana (SSY) encourages savings for a girl child’s future by offering high interest rates and tax benefits.
The SSY scheme is meant for girls below 10 years. (Representative Image)
‘Beti Bachao, Beti Padhao’ is a government campaign in India that focuses on empowering the girl child. The scheme was launched in January 2015 and involved targeting issues such as low child sex ratios, health of girl children, their enrollment in schools and financial empowerment through a range of initiatives and schemes.
With a multi-sectoral approach, the government has been focusing on this initiative by launching several media campaigns, community mobilisation and advocacy programs.
Under this campaign, one of the most important schemes is Sukanya Samriddhi Yojana (SSY). The SSY scheme encourages savings for a girl child’s future. It offers high interest rates and tax benefits, helping parents or guardians secure funds for the education and marriage expenses of the daughters.
Benefits of Sukanya Samriddhi Yojana:
The SSY scheme, meant for girls below 10 years, offers many benefits. One can open an account under this scheme with as less as Rs 250 deposit, claim tax deductions and get attractive returns. At present, the scheme offers 8.2% returns p.a., which is subject to periodic review by the government.
The maximum deposit allowed in this scheme is capped at Rs 1.5 lakh per financial year. Once started, the deposits must continue for 15 years. The account matures 21 years from the opening date.
Sukanya Samriddhi Yojana Eligibility:
A Sukanya Samriddhi Yojana account can be opened by parents or legal guardians for a maximum of two girl children. The age of the child must be 10 years or below. After the girl turns 18, 50% of the savings can be withdrawn for education, with valid admission proof required.
Sukanya Samriddhi Yojana Tax Benefits:
Sukanya Samriddhi Yojana scheme comes with triple tax benefits. Deposits up to Rs 1.5 lakh per financial year qualify for deductions under Section 80C of the income tax rules. Parents can use this scheme to lower their taxable income during ITR filing. The interest accrued under this scheme is exempt from tax and is compounded annually. The amount received upon maturity is also free from tax.
Steps To Apply For Sukanya Samriddhi Yojana:
Fill the SSY Account Opening Form: Reach out to your bank or a post office and fill out the official Sukanya Samriddhi Yojana account form.
Submit documents such as girl child’s birth certificate, guardian’s ID and address proof, Aadhaar or passport, etc
Deposit any amount between Rs 250 and Rs 1.5 lakh in a particular financial year to start the account.
Set up a payment deposit mode at the bank branch or through NetBanking for regular deposits.
To be clear, most banks do not offer the service to open an SSY scheme account online. One needs to visit their nearest branch for activation of the process, but deposits can be made digitally.
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Delhi, India, India
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