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SUKANYA SAMRIDDHI YOJANA: GIFT TO YOUR GIRL CHILD

Has your Girl child just been born or are you finding some savings plan targeted towards her Higher Education/ Marriage? Then you have landed at the right place. Here you will find all the accurate and updated information about by small savings scheme by Central Government – Sukanya Samriddhi Yojana. Currently, it offers a lucrative interest rate of 7.6% which is way higher than FD or RD. Well, let’s gets into the details.

Features of PPF are as follows :

  • Criteria: Sukanya Samriddhi Account can be opened in the name of a girl child by her guardian before attaining age 10. The account holder shall have a single account under this scheme. An account can be opened for a maximum of two girl children from a family. Account for more than two accounts can be opened from a family for some special cases. Follow this link for details. LINK
  • Investment Limit: Minimum of Rs. 250 and maximum Rs 1,50,000 can be deposited in a financial year. Non-contribution of minimum subscription amount will result in “Account under default” and to revive such account panel fee of Rs.50 and minimum subscription amount of Rs.250 to be deposited for such defaulting years. Also, the defaulted account can be regularized before the completion of 15 years unless it can’t be revived. Though this account has a maturity of 21 years, money can be deposited till 15 years from the opening of the account.
  • Tax Benefit: Contribution to SSY scheme qualifies for tax deduction under Section 80C of Income Tax Act. Interest earned on it is also exempt from Income Tax under Section 10 of the Income Tax Act. So basically enjoys E-E-E status(Exempt- Exempt- Exempt) i.e. Investment, Interest Earned, and Maturity Corpus are exempt from Income Tax.
  • Rate of Interest: At present SSY offers a lucrative interest rate of 7.6% per annum(from 01/04/20 to 30/09/21). The interest rate is reviewed quarterly. Interest is calculated on the lowest balance between the 5th and end of the month and credited to the account at the end of the financial year. Historical interest rates of SSY are given below :
SUKANYA SAMRIDDHI YOJNAYA 1
  • Partial Withdrawal: Withdrawal is allowed for the purpose of education of the account holder after she attains the age of 18 or passed 10th standard whichever is earlier. Amount of withdrawal permitted up to 50% amount at the end of preceding financial year from the year withdrawal application is filed in lumpsum or in maximum 5 no installment for 5 years. For the actual amount withdrawal, requisite documents have to be produced.
  • Premature Closure: In the event of death of the account holder SSY account shall be closed immediately and proceeds shall be handed over to the guardian on an application in Form-2 and on the production of the death certificate from the competent authority.
    (II) After completion of 5 years from the opening of account premature closure can be done of the meeting following stringent conditions –

(a) Treatment of life-threatening disease of the account holder

(b) Death of the guardian which is causing undue hardship for the continuation of the account

(c) Others extreme compassionate ground which is to be established by documentation.

  • Closure on Maturity: The Sukanya Samriddhi Account will be matured after completion 21 years from its opening. Also, the account can be closed on the marriage of the account holder before the completion of 21 years. For this, the account holder has to file an application for such closure for the reason of intended marriage on furnishing of a declaration duly signed on non-judicial stamp paper attested by the notary supported with proof of age confirming that the applicant will not be less than eighteen years of age on the date of marriage.

The closure is allowed before one month from the date of the intended marriage or after three months from the date of marriage. Please keep in mind this timeline when applying for closure for marriage purposes.

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