Sukanya Samriddhi Yojana

 

        Sukanya Samriddhi Scheme

The Sukanya Samriddhi Yojana (SSY), also known as girl child prosperity scheme is launched by Prime Minister Narendra Modi. SSY account is to ensure a bright future for girl children in India. This yojana is to facilitate them proper education and carefree marriage expenses.  The scheme has well been accepted by the masses in wake of the financial security and independence it would provide to the girl child as well as their parents and guardians.

Sukanya Samriddhi Account Yojana:  Key Pointers

• Till a girl attains an age of 10 years, the Sukanya Samriddhi account yojana can be opened under her name
• Only one account under this scheme is permissible for every girl child
• Walk into any post office or authorized banks to open the account
• To open an account under SSAY, Birth Certificate of the girl child would be required to submit
• The opening amount for the account is Rs 1,000. Thereafter a multiple of Rs 100 can be deposited to the account with a minimum of Rs 1,000 per year
• The maximum limit for deposits in the account is Rs 1,50,000 per year
• You have to pay in this scheme for 14 years. Suppose you have opened this account when the age of your girl child was X years then you have to pay in this scheme till your girl child age is X +14 years.
• The maturity duration of the account is 21 years from the date of opening the account.
• Sukanya Samriddhi Account is transferrable to anywhere in India from a Post office or bank to others.

The scheme comes from Ministry of Finance under its notification GSR 863(E).  This notification was published on 02^nd December 2014.  The scheme will operate with the name Sukanya Samriddhi Account Rules, 2014.

Sukanya Samriddhi Accounts

Rate of interest  8.6% Per Annum(w.e.f 1-4-2016),calculated on yearly basis ,Yearly compounded.

• Minimum INR. 1000/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposit in multiple of INR 100/- Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial year

• A legal Guardian/Natural Guardian can open account in the name of Girl Child.

• A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children.

• Account can be opened up to age of 10 years only from the date of birth. For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 &1.12.2004 can open account up to1.12.2015.

• If minimum Rs 1000/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.

• Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.
• Account can be closed after completion of 21 years.

• If account is not closed after maturity, balance will continue to earn interest as specified for the scheme from time to time.

• Normal Premature closure will be allowed after completion of 18 years /provided that girl is married.

 

 Required Documents:

The process of opening a Sukanya Samriddhi account is quite simple and not much documentation is required in normal cases.  Here is a list of document a parent or guardian needs to take along when applying for an account under the scheme:

• Birth certificate of the girl child is mandatory

• Domicile certificate of parents/guardians

• Identity proof of the parents/guardian 

Authorized to operate Sukanya Samriddhi Account:

As mentioned earlier in the article, the account could be opened by the parents of legal guardian of the girl child.  They would be operating the account until the girl child turns 10 years.  After 10 years, a girl child may operate her own account, if she chooses to.

Tax Benefits from Sukanya Samriddhi Account Yojana:

Any amount that would be deposited in Sukanya Samriddhi Account would be exempted from tax under 80C of IT Act, 1961, till a maximum of Rs 1.5 lakh.  The interest and maturity amount on this account is also exempted from income tax. Also the amount matured at the time to account closure would be completely tax free.