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Sukanya Samriddhi Yojana (Sukanya Samridhi Yojana): Eligibility, Rules and Tax Benefits

Anjali’s daughter, Jiya has recently started primary school. Jiya is very smart and all her teachers love her. But the expenses of her fees, uniforms and books have made Anjali quite worried. She knows that in the future the fees will keep increasing. To support her children’s higher education and her future, Anjali starts looking into various girl child investment plans. She finds information about the Sukanya Samriddhi Yojana. The elaborate information is mentioned below:

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is an initiative launched under the Beti Bachao Beti Padhao campaign by the Prime Minister of India, Narendra Modi. This campaign was launched in 2015 and is jointly run by the Ministry of Women and Child Development, the Ministry of Human Resource Development and the Ministry of Health and Family Welfare. The aim of this scheme is to provide a bright future for the girl child of India. It helps the parents of girl children invest in higher education and save money for marriage.

The Sukanya Samriddhi interest rate is announced quarterly. Parents can open an account for their girl child who is under the age of 10. The Sukanya Samriddhi Yojana account can be opened in any post office or authorized bank.

Eligibility

To open a Sukanya Samriddhi Yojana account, You have to fulfil the following eligibility:

  • Only girl children are allowed to hold Sukanya Samridhi Yojana accounts.
  • The maximum age of the girl should not be more than 10 years.
  • Parents/guardians are allowed to open a Sukanya Samridhi Yojana account on behalf of their daughter/s.
  • One parent/ legal guardian can open a maximum of two accounts.
  • One account is allowed per one girl child.
  • Per one family, only two accounts can be opened under this scheme. In the case of twins or triplets, three accounts can be opened by one parent /guardian.

 

Rules

The following rules have to be followed  under the Sukanya Samriddhi Yojana :

  • The girl child must be a resident Indian citizen
  • The  Sukanya Samridhi Yojana Account can be opened by the parents or legal guardians of a girl child, who is under the age of 10 years.
  • Money in the account can be deposited by the parents or the child after attaining 10 years of age. The account has to be operated by the girl child after she is 18 years old.
  • To open an account under the Sukanya Samridhi Yojana scheme you can visit any post office or authorised commercial bank.
  • The minimum amount that must be deposited every financial year is rs 250, while the maximum is Rs 1.5 lakhs.
  • The tenure of the Sukanya Samridhi Yojana account is 21 years from the opening date.
  • The account may be closed either on the maturity of the tenure or if the girl child is married after attaining 18 years of age.
  • For higher education purposes, after the girl child has reached 18 years of age or has completed class 10, 50% of the balance in the account can be withdrawn.
  • In case of a shortage in deposit, the account shall be considered as ‘account under default’.A penalty of rs 50 will need to be paid for no minimum deposit in a financial year

 

Interest rate

The Sukanya Samriddhi Yojana interest rate has been 7.6% for the financial year 2021-2022. The interest rate is announced quarterly every financial year.

Tax benefits

The Sukanya Samridhi Yojana accounts have been given a few tax-saving benefits. Under section 80C of the Income-tax act, Investments made under the Sukanya Samriddhi Yojana are eligible for a deduction of up to Rs 1.5 lakh. The proceeds received upon maturity/withdrawal from this account are also exempt from tax. The interest ensuing from this account, compounded annually is also exempt from tax.

Conclusion

The Sukanya Samriddhi Yojana is an excellent government-backed investment plan. The Sukanya Samriddhi Yojana’s interest rate is very high and tax benefits are also provided. This scheme has been created for the betterment of girl children in India and for removing the discriminatory gender ratio. So, if you are searching for an investment plan for your girl child look no further.

FAQs:

Can the Sukanya Samridhi Yojana account be transferred?

Yes, the account under this scheme can be transferred from one post office or bank to another free of cost. To transfer the account proof of a change of residence of either the parent/guardian or the girl child will need to be submitted. In any different circumstance, a fee of Rs 100 will be payable.

What are the documents required to open a Sukanya Samridhi Yojana account?

The documents required to open a Sukanya Samridhi Yojana account for your girl child  are as follows :

Birth certificate
Identity and residential proof of parent/guardian.
Medical certificates in case of multiple girl children under one order of birth.
Any other documents that may be requested by the post office or bank.

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