Sukanya Samriddhi Yojana (SSY) is a small deposit scheme that is part of the ‘Beti Bachao Beti Padhao’ campaign and has tax status of exempt-exempt-exempt (EEE). This means that the sum invested, the interest earned, and the maturity amount are all tax-free.
Parents or legal guardians are only allowed to open one account per girl child, with a maximum of two accounts in the names of two separate girls.The maturity amount is due after the 21-year period has passed.
If the minimum amount necessary is not deposited in a single financial year, a penalty will be imposed. Sukanya Samriddhi Yojana has a 7.6% interest rate for the quarter of January to March 2022.
To open a Sukanya Samriddhi Yojana account, you must be eligible.
A girl child’s age should not surpass ten years.
She must be a permanent resident of India.
A single family’s account cannot be registered for more than two girl children. If a girl gives birth to twins or triplets, more than two accounts can be opened.
Documentation is required.
Proof of identification and proof of address
Birth certificate and photographs of the girl child and her parent/guardian
The Aadhaar card comes in handy in this situation.
How to open a Sukanya Samriddhi account at a post office
Here’s how to register an SSY account, according to the India Post website:
Step 1: Go to the post office nearest you.
Step 2: Complete the post office account application.
Step 3: Fill in the required information, such as the applicant’s name and address, and paste the applicant’s photo.
Step 4: Fill out the information for the initial deposit.
Step 5: Fill out the nomination form.
Send the form, along with the relevant documentation, to your local post office.
Tax advantages
Sukanya Samriddhi Yojana investments are allowed for deductions up to Rs.1,50,000 under Section 80C of the Income Tax Act, 1961. Furthermore, both the interest generated and the amount received at maturity are tax-free.
Withdrawal
A girl child may withdraw money from her account after she reaches the age of 18 or has completed the 10th grade.
A withdrawal of up to 50% of the balance available at the conclusion of the previous fiscal year.
According to SSY guidelines, withdrawals can be made in one lump sum or in up to five annual instalments of up to one per year for a maximum of five years, subject to the stipulated ceiling and real fee/other charge requirements.
If the account holder applies for it and provides a declaration duly signed on non-judicial stamp paper attested by a notary, along with proof of age, confirming that the applicant will not be under the age of eighteen years on the date of marriage, the account may be closed before the account holder reaches the age of twenty-one years.
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