Sukanya Samriddhi Yojana: The government-sponsored Sukanya Samriddhi Yojana (SSY) was introduced in 2015 by the Ministry of Finance, Government of India, with the goal of advancing the welfare and education of female children in India. It is a component of the campaign Beti Bachao, Beti Padhao, which strives to provide girls in India better education and a stable future.
In accordance with this plan, parents or legal guardians may create a savings account in their female child’s name and make deposits up to the time she becomes 18 years old. The plan offers a greater interest rate than the majority of other savings plans, and section 80C of the Income Tax Act permits a tax deduction for the amount deposited. Both residents of India and non-resident Indians are eligible for the programme (NRIs).We will go through the features, advantages, requirements, and process for opening an SSY account in this article.
Sukanya Samriddhi Yojana’s features include:
Eligibility: Parents or legal guardians of a girl child can create an SSY account for their daughter. To establish an account, the girl kid must be younger than 10 years old.
Deposits: The lowest deposit amount is 250 rupees, while the maximum deposit amount each fiscal year is 1.5 lakh rupees. Deposits may be made in one single sum or in several payments.
Tenure: Once the female kid reaches the age of 21 from the date the account was opened, the account matures. At the same interest rate, the account may be extended for an additional five years.
Interest rate: The Sukanya Samriddhi Yojana’s interest rate is set by the Indian government and is updated every three months. The current interest rate is 7.6% per year as of March 11th, 2023.
Financial advantages: Section 80C of the Income Tax Act permits a tax deduction for deposits made to an SSY account. Taxes are not applied to either the interest or the maturity amount.
If the female child becomes 18 years old, partial withdrawals of up to 50% of the remaining amount may be made for higher study or marriage. If the account holder passes away, the account may be prematurely closed.
Transferability: If the female kid moves, the account may be moved to any location inside India.
Sukanya Samriddhi Yojana’s advantages include:
Greater interest rate: The Sukanya Samriddhi Yojana gives an interest rate that is higher than most other saving plans, making it a profitable investment choice for parents or other people who are legally responsible for a female child.
Financial advantages: Section 80C of the Income Tax Act permits a tax deduction for deposits made to an SSY account. It is a tax-efficient investment choice since both the interest generated and the maturity amount are tax-free.
Future security for girls: The programme strives to give girls future security by boosting their welfare and education. The money can be utilised for the female child’s future financial security by paying for her further education or wedding costs.
Simple to open: A minimum deposit of Rs. 250 is required to start the account, and there are no complications.
Transferability: The account holder has flexibility since it may be moved to any location in India if the female kid switches residences.
Eligibility Criteria for Sukanya Samriddhi Yojana:
- The girl child’s natural or legal guardian may open the account.
- The young lady must reside in India.
- The girl kid must be younger than 10 years old when the account is opened.
- Per girl kid, only one account may be established.
- A household can register an account for a maximum of two female children.
- Even if the girl kid already has a PPF account in her name, the account can be created.
NRIs (non-resident Indians) are also permitted to create SSY accounts for their female children, although tax advantages are not available to them.
How to Create an SSY Account:
Go to a bank or post office that is designated to provide Sukanya Samriddhi Yojana accounts.
- Provide all necessary information on the application form, including the girl’s name, birthdate, and information about her parents or legal guardians.
- Provide the required paperwork, such as the girl’s birth certificate and the parent’s or guardian’s identity verification.
- For the account to be opened, a minimum deposit of Rs. 250 must be made.
- The account will be opened, and the account holder will receive the passbook.
Conclusion:
A good programme for the welfare and education of female children in India is the Sukanya Samriddhi Yojana. It guarantees the girl child a bright future by supporting her care and education. The plan offers a greater interest rate than the majority of other savings plans, and section 80C of the Income Tax Act permits a tax deduction for the amount deposited. The programme offers the account holder freedom and is simple to open. To safeguard their daughter’s future, parents or legal guardians of a girl child should think about setting an SSY account.
Benifet Sukanya Samriddhi Yojana
The government-sponsored Sukanya Samriddhi Yojana (SSY) was introduced in 2015 by the Ministry of Finance, Government of India, with the goal of advancing the welfare and education of female children in India. The following are a few advantages of the Sukanya Samriddhi Yojana:
- Greater interest rate: The Sukanya Samriddhi Yojana gives an interest rate that is higher than most other saving plans, making it a profitable investment choice for parents or other people who are legally responsible for a female child. The current interest rate is 7.6% per year as of March 11th, 2023.
- Financial advantages: Section 80C of the Income Tax Act permits a tax deduction for deposits made to an SSY account. It is a tax-efficient investment choice since both the interest generated and the maturity amount are tax-free.
- Future security for girls: The programme strives to give girls future security by boosting their welfare and education. The money can be utilised for the female child’s future financial security by paying for her further education or wedding costs.
- Simple to open: A minimum deposit of Rs. 250 is required to start the account, and there are no complications.
- Transferability: The account holder has flexibility since it may be moved to any location in India if the female kid switches residences.
- If the girl kid is 18 years old, the plan permits partial withdrawals of up to 50% of the remaining amount for higher study or marriage.
- Account extension: Once the female child turns 21, the account may be extended for a further five years at the same interest rate.
Sukanya Samriddhi Yojana, which offers better interest rates and tax benefits while simultaneously advancing the welfare and education of female children in India, is a good programme in general for their welfare and education.