Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is a government-backed savings scheme launched by the Government of India in January 2015. The scheme is designed to promote the welfare of the girl child and provide financial security for their future education and marriage expenses. Under the Sukanya Samriddhi Yojana, parents or legal guardians can open a savings account in the name of a girl child who is below ten years of age.

The scheme offers a high rate of interest, income tax benefits, and flexibility in depositing and withdrawing funds. This article will delve into the various aspects of the Sukanya Samriddhi Yojana, including its features, benefits, eligibility criteria, and the application process, to help you make an informed decision about investing in this scheme.

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Eligibility Criteria for Sukanya Samriddhi Yojana

To open a Sukanya Samriddhi Yojana account for a girl child, the following eligibility criteria must be met:

1. Age: The girl child must be below 10 years of age at the time of account opening.
2. Citizenship: The account can only be opened for a girl child who is a citizen of India.
3. Number of accounts: Only one account can be opened in the name of a girl child. Parents or guardians cannot open multiple accounts for their children.
4. Deposit limit: The minimum deposit amount is Rs. 250, and the maximum deposit amount is Rs. 1.5 lakh in a financial year.
5. Tenure: The account matures after 21 years from the date of opening or on the date of marriage of the girl child after she turns 18 years of age, whichever is earlier.
6. Guardianship: The account can be opened and managed by the natural or legal guardian of the girl child.

It is important to note that the account cannot be opened in the name of a boy child, and the scheme is exclusively for the benefit of the girl child. Meeting these eligibility criteria is essential to open a Sukanya Samriddhi Yojana account and avail of its benefits.

Benefits of Investing in Sukanya Samriddhi Yojana

There are several benefits of investing in Sukanya Samriddhi Yojana. Here are some of the key advantages of this scheme:

1. High Rate of Interest: The Sukanya Samriddhi Yojana offers a high rate of interest of 7.6% per annum, which is revised every quarter. The interest earned is compounded annually, making it an attractive investment option for the long term.
2. Tax Benefits: Deposits made in the Sukanya Samriddhi Yojana are eligible for a tax deduction of up to Rs. 1.5 lakh that is under Section 80C of the Income Tax Act. The interest earned and the maturity amount are also tax-free.
3. Financial Security: The scheme is designed to provide financial security for the future education and marriage expenses of the girl child. The account matures after 21 years from the date of opening, providing a long-term savings option.
4. Flexibility in Deposits: Parents or guardians can deposit any amount between Rs. 250 and Rs. 1.5 lakh in a financial year. They can make deposits in the account for 15 years from the date of opening, providing flexibility in terms of the amount and duration of deposits.
5. Transferable: In case the girl child moves to a different city or town, the account can be transferred to any post office or authorized bank in India. This ensures that the savings are not lost and the investment can continue uninterrupted.

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Tax Benefits of Sukanya Samriddhi Yojana

 Here are the tax benefits associated with the scheme:

1. Tax Deduction: Deposits made in Sukanya Samriddhi Yojana are eligible for a tax deduction of up to Rs. 1.5 lakh in a financial year. This deduction is available which is under Section 80C of the Income Tax Act and can be claimed by the parents or guardians who have opened the account on behalf of the girl child.
2. Tax-Free Returns: The interest earned on the deposits and the maturity amount are tax-free. The interest is compounded annually and credited to the account, which can be withdrawn after the account matures. The maturity amount is also tax-free, providing a significant benefit to the investor.
3. Partial Withdrawals: Sukanya Samriddhi Yojana allows partial withdrawals after the girl child turns 18 years old or after she gets married, whichever is earlier. These partial withdrawals are tax-free and do not attract any tax liability.
4. No TDS: Sukanya Samriddhi Yojana accounts are exempt from TDS (Tax Deducted at Source). The interest earned on the deposits is not subject to TDS, providing a significant advantage to the investors.

How to Open a Sukanya Samriddhi Yojana Account

Opening a Sukanya Samriddhi Yojana account is a simple and straightforward process. Here are the steps to open an account:

1. Find a Post Office or Bank: To open a Sukanya Samriddhi Yojana account, you can visit any authorized post office or bank branch that offers the scheme.
2. Fill the Application Form: Collect the application form from the post office or bank and fill in the required details such as the name and age of the girl child, name and address of the parent or guardian, and other details.
3. Submit Required Documents: Along with the application form, you will need to submit the girl child’s birth certificate and proof of identity and address of the parent or guardian, such as Aadhaar Card, Passport, or Voter ID.
4. Deposit the Amount: Make the initial deposit amount of at least Rs. 250 to open the account. You can make the deposit in cash or by cheque.
5. Collect the Passbook: After submitting the application form and the required documents, you will receive a passbook for the Sukanya Samriddhi Yojana account. The passbook will contain details such as the account number, the deposit amount, the date of opening, and the interest earned.

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Documents Required to Open a Sukanya Samriddhi Yojana Account

To open a Sukanya Samriddhi Yojana account, the following documents are required:

1. Birth certificate of the girl child: A birth certificate issued by the municipal authority or any other authorized government body must be submitted to establish the age of the girl child.
2. Proof of identity and address of the parent or legal guardian: The parent or legal guardian must provide their identity and address proof. Documents such as Aadhaar Card, Passport, Voter ID, or Driving License can be submitted as proof.
3. Account opening form: The account opening form for Sukanya Samriddhi Yojana must be filled with details such as the name of the girl child, name and address of the parent or legal guardian, and other relevant information.
4. Passport-sized photograph of the girl child and the parent or legal guardian: One passport-sized photograph each of the girl child and the parent or legal guardian must be submitted along with the account opening form.

It is important to note that the above documents must be submitted in original, along with a self-attested photocopy. The post office or bank officials will verify the documents and confirm the eligibility of the applicant before opening the account.

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FAQ’s

Who is eligible to open a Sukanya Samriddhi Yojana account?

Any parent or legal guardian of a girl child below 10 years of age can open a Sukanya Samriddhi Yojana account.

What is the minimum and maximum amount that can be deposited in a Sukanya Samriddhi Yojana account?

The minimum amount that can be deposited in a Sukanya Samriddhi Yojana account is Rs. 250, and the maximum amount is Rs. 1.5 lakh in a financial year.

Can I open more than one Sukanya Samriddhi Yojana account for my daughter?

No, only one Sukanya Samriddhi Yojana account can be opened for a girl child.

Conclusion: “Sukanya Samriddhi Yojana”

Sukanya Samriddhi Yojana is a government-backed savings scheme designed to provide financial security for the future of girl children in India. The scheme offers a high rate of interest, tax benefits, and flexibility in deposits, making it an attractive investment option for parents or legal guardians who wish to secure the future of their girl child.

The scheme aims to promote the education and marriage of girl children and provides a safe and reliable investment option that can help parents or legal guardians build a corpus for their girl child’s future needs. The scheme offers a high-interest rate, which is compounded annually and credited to the account, providing a stable and predictable investment option for the long term.

Furthermore, Sukanya Samriddhi Yojana is a secure and transparent scheme, backed by the Government of India, and ensures that the investment made is safe and secure. The scheme offers tax benefits that is under Section 80C of the Income Tax Act, making it an attractive investment option for those looking to save tax.

In short, Sukanya Samriddhi Yojana is a well-designed and well-structured investment option for parents or legal guardians looking to secure the future of their girl child. The scheme provides a high rate of interest, tax benefits, and flexibility in deposits, making it an attractive and secure investment option for the long term.