Sukanya Samriddhi Yojana Tax Benefit: In keeping with the aforementioned goals, Prime Minister Narendra Modi introduced the “Sukanya Samriddhi Yojana (SSY)” as part of the Beti Bachao Beti Padhao campaign. The programme’s literal translation is “Girl Child Prosperity Scheme.” In Panipat, Haryana, it was introduced on January 22, 2015.

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Key Features of Sukanya Samriddhi Yojana (SSY)

Investment value	Minimum value – Rs.250 and Maximum value – Rs.1.5 lakh per annum
Current yearly interest rate	8.2% per annum
Maturity value	Would vary depending on the value invested
Maturity duration	21 years from the date of investment

What is the Sukanya Samriddhi Yojana (SSY)?

As part of the Beti Bachao Beti Padhao campaign, the government introduced the Sukanya Samriddhi Yojana (SSY) in 2015 to promote saving for the future of female children. It’s a fixed-income investment where you can deposit money on a regular basis and get interest. Additionally, you are eligible to receive tax deductions for your contributions to the Sukanya Samriddhi plan under Section 80C of the Income Tax Act, up to ₹1.5 lakh in a fiscal year.

Features of Sukanya Samriddhi Yojana Account

When making financial decisions, it is critical to consider the long-term effects of each option. Therefore, before you decide to put money into something, it is imperative that you understand its aspects.

Interest rate:

Every quarter, the government sets the interest rate for the Sukanya Samriddhi Yojana. The interest rate for the quarter ending in June 2023 is 8% annually, compounded quarterly. Only at maturity or in the event that your daughter’s citizenship or place of residence changes will the interest become due.

Lock-in period:

The Sukanya Samriddhi Yojana (SSY) has a 21-year lock-in term. For instance, the account will mature when the girl reaches the age of 26 if it is opened when she is 5 years old.

Deposits:

For a period of 15 years, a minimum deposit of ₹250 is required annually. ₹1.5 lakh is the most that can be invested in a fiscal year. Deposits may be made electronically, using cash, demand drafts, checks, or in multiples of $100. In a year, you are able to deposit any number of times. If, however, you don’t contribute the required amount in a given year, your account will be closed. However, you can reactivate the account by making the required minimum deposit and paying a ₹50 penalty.

Transfer of accounts:

If you move, you can transfer your Sukanya Samriddhi account balance for free from one post office to another or from one bank institution to another across the nation. In this instance, you’ll have to provide address verification. If there are any other transfers, there will be an additional fee of ₹100.

The number of accounts:

A household may open a maximum of two accounts, and each girl kid may only have one account. If you are the parent of triplets (all girls) or if you are a mother of one kid and subsequently have twin girls, you are allowed to open more than two accounts.

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Eligibility Criteria

The requirements for opening a Sukanya Samriddhi account are dual in nature.

Eligibility criteria for the beneficiary (the girl child)

• The only youngsters eligible to profit from this plan are girls.
• The age limit for the Sukanya Samriddhi Yojana is ten years old. However, there is a year-long grace period. As a result, your daughter can open an account with you within a year of turning ten.
• The documentation proving your daughter’s age must be submitted.

Eligibility criteria for those who will open and operate the account

• Only if you are your daughter’s legal guardian or biological parent can you open an account on her behalf.
• A parent or legal guardian may only open two accounts in total.

Benefits of Sukanya Samriddhi Yojana Account

The advantages of funding the Sukanya Samriddhi Yojana are as follows:

• Guaranteed Returns: This programme, supported by the government, offers investors a guaranteed rate of return. It currently provides an annual return that is 8% p.a. more than that of any other government programme.
• Benefits for Taxes: Contributions to the Sukanya Yojana are deductible from taxes. Section 80C allows you to deduct up to Rs 1.5 lakh. Additionally, the amount of the maturity and interest earned are tax-exempt.
• Ideal Option for Female Child: Given that you will receive a guaranteed return on your investment, this is a choice you should absolutely consider if you have a female child. The mature sum might be applied to the girl child’s marriage or educational costs.
• Economical Investment Option: A minimum of Rs 250 is required to start a Sukanya Samridhi account. Moreover, to maintain the activity of your account, you need to deposit a minimum of Rs 250 annually. It is therefore a reasonably priced investment opportunity.

Tax Benefits of Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) can assist you in achieving your tax-saving goal while you accumulate wealth for the future of your daughter. The plan has the exempt-exempt-exempt (EEE) classification. This implies that:

• You can deduct your contributions to the Sukanya Samriddhi Yojana from your taxes under Section 80C of the Income Tax Act. Up to ₹1.5 lakhs in deductions are permitted. If, during a particular fiscal year, you decide to invest ₹1.5 lakh in the scheme, the full amount will be tax deductible.
• Tax exemption also applies to the interest you earn on your investment.
• There are no taxes due upon withdrawal or maturity.

Sukanya Samriddhi can assist you in building a sizable corpus over time for your daughter’s future because no portion of your investment is subject to taxes due to its EEE status.

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Withdrawal on Maturity

You can take out the entire amount in your Sukanya Samriddhi account, interest included, after 21 years. The beneficiary will receive payment of the whole balance, including interest, upon the account’s maturity. On the withdrawal, there won’t be any taxes due. An application form, ID evidence, citizenship proof, and proof of residency must all be submitted. If, after 21 years, you choose not to withdraw the remaining amount, the corpus will not accrue interest.

How to open a Sukanya Samriddhi Account?

Now that you are aware of the specifics of the Sukanya Samriddhi Yojana, let’s examine how to register for an SSY account. Let’s first go over the paperwork needed to open an SSY account.

You will have to fill up the application form and submit it along with the following documents:

• A properly completed account opening form; the girl’s child’s birth certificate.
• evidence of identity and address for the depositor.
• Medical certificates are attesting to the simultaneous delivery of several girl children.
• any additional paperwork that the post office or bank requests.
• A minimum of ₹1,000 must be invested initially, and this can be done online, with a demand draft, cash, or cheque.

You can visit any authorised bank branch that offers this initiative, or even your local post office, to open a Sukanya Samriddhi account for your daughter. Let’s examine the steps involved in opening an SSY account both online and offline:

How to Open SSY Offline

Any partnering bank or Post Office location can help you open an SSY account. The steps to open an offline SSY account are as follows:

• Step 1: Proceed to the closest bank or post office.
• Step 2: Complete the account opening form and include the necessary KYC paperwork.
• Step 3: Make a cash, cheque or demand draft deposit of the investment amount. You only need to invest Rs. 250 to make your first investment.
• Step 4: The post office or bank will process your application and provide you with a passbook after receiving payment.

How to Open SSY Online

At this time, opening an SSY account online is not an option offered by the bank or the post office. On the other hand, you can make online deposits after the account is opened. v

Sukanya Samriddhi Yojana Application Form

You need to complete an account opening application form in order to open a Sukanya Samriddhi account. If you want to open an account, you can pick up this form straight from the bank or post office closest to you.
For your reference, this is the form that you must complete.

Conclusion

Similar to a helping hand extended by the government to encourage savings for girl children is the Sukanya Samriddhi Yojana (SSY). The investment is a desirable choice for your female child’s needs because it has an EEE status and a sovereign guarantee. The 21-year lock-in term, however, may be a major disadvantage for people who wish to receive the money sooner. By contrast, another tax-saving investing option with a short lock-in period is the Equity Linked Saving Scheme (ELSS). The best thing is that you might potentially earn double-digit returns on your investments when you make long-term ELSS investments.

A part of the money you have set aside for your daughter can be invested in the risk-free and secure Sukanya Samriddhi Yojana. To ensure that, despite inflationary pressures, you have enough money for your daughter’s higher education and marriage, it is a good idea to include a variety of stocks in your portfolio.

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FAQs

Q. Can I put money into my Sukanya Samriddhi account online?

Ans: Yes, you can fund your Sukanya Samriddhi Account online by using e-transfers.

Q. Which bank has the best reputation for the Sukanya Samriddhi Yojana?

Ans: There are no differences in the advantages of the Sukanya Samriddhi Yojana depending on whether a post office, private bank, or public sector bank offers it. The government sets the interest rates for the Sukanya Samriddhi Yojana every quarter, and this also applies to banks and post offices.

Q. The Sukanya SamriddhI Yojana began when?

Ans: On January 22, 2015, Prime Minister Narendra Modi announced the Sukanya Samriddhi Yojana

Q. Is Sukanya Samriddhi Yojana’s interest subject to taxes?

Ans: No, there is no taxation on the interest received from Sukanya Samriddhi Yojana donations. The investment is classified as exempt, exempt, and exempt (EEE).

@MAN