Sukanya Samriddhi Yojana (SSY) Scheme is another Female welfare savings scheme after PPF in India. In order to increase female percentage in India, Honorable PM, Mr. Narendra Modi, has initiated Sukanya Samriddhi Yojana scheme (SSY) savings account on 22nd Jan, 2015, specialized for only girl Child. This Sukanya Samriddhi Account is a part of initiative program “Beti Bachao – Beti Padhao” (BBB) of Government of India.
Why this Sukanya Samriddhi Account is required?
Generally, Women of India are not completely protected due to low female sex ratio. Ladies are still not safety before marriage or after marriage, though various legal procedure and support are available. In order to increase female sex ratio, Government has initiated many steps and Sukanya Samriddhi Account (SSA) is one of the financial supporting schemes.
Benefits of Sukanya Samriddhi Yojana Account
- Rate of interest
The interest rate offered by SSY is 9.2% for this financial year 15-16 and it is highest among all Small Savings Account Schemes of Govt. The interest rate for this SSA scheme will be linking to Govt. Bond yield and will be 0.75% more than Bond yield. The Interest Rate will be varied every year and will be declared by Govt. of India every year. Interest will be accrued on monthly basis on lowest balance amount and total interest amount will be credited to Account of SSA holder yearly. Minimum 1000 and maximum 1, 50, 000 per year can be deposited for one account.
Question: How much interest and total amount, I can get after 21 years of opening of Sukanya Samriddhi Account if I have deposited amount INR 150000/- for 1st 3 years and then 75000/- for next 11 years?
Answer: As there is no rule for premium installment amount, you can deposit any amount and it must be minimum INR 1000/- per year to continue your Sukanya Account. Generally, as per updated interest rate by RBI is 9.2% per annum for Sukanya Account. Your Total Deposited amount will be INR 12,75,000/- within 14 years and Total interest amount for 21 years will be INR 40,39,694/-(approx). So total withdrawal amount will be INR 53,14,694/-(approx) on 21 years from the opening date of Sukanya Account.
- Income Tax Exemption Facility
For encouragement of people towards opening more Sukanya Samriddhi Account, Government has included this SSA investment scheme u/s 80C of Income Tax Act, 1961. This SSA investment amount will be gone under EEE i.e. income tax exemption is available on interest income and on withdrawal amount. Since, the Revenue Department has the authority on this SSA and if amendment will be required, then it will be passed by Government.
Question: If I have been depositing INR 24000/- per annum in Sukanya Account for my daughter, then how much tax benefit I would be receiving per annum and the maturity amount after 21 years will be taxable or not?
Answer: You will get Tax exemption u/s 80C on total amount INR 24000/- per annum. After 21 years, your total maturity amount will be Tax free.
- Lock-in Period for SSA
The maturity of SSA is possible on 21 years from the opening date of the account or marriage of the Girl, whichever is earlier. For Marriage, the age of girl should be 18 years at the time of marriage. The account operation is not permitted beyond date of marriage.
One Premature amount can be withdrawn by depositor when the girl child becomes 18 or more, only for Higher Education purpose. Premature withdrawal amount is restricted to 50% of the current balance amount. The SSA installment amount can be deposited till completion of 14 years from the date of account opening and maturity is 21 years from account opening date.
Question: Now, the age of my daughter is 2 years old and I have opened Sukanya Account currently. After 21 years, when my daughter will become 23 years old, the Sukanya Account maturity date will be arrived. If my daughter is not ready to marry in the age of 23 and she wants to marry after 5 years from the date of maturity of Sukanya Account, then can she continue Sukanya Account up to her marriage date?
Answer: Yes. Her Sukanya Account will be continuing for next 5 years or more according to wish of daughter for marriage. And the Govt. will give interest continuously as per regular interest rate during opening of Sukanya Account.
- Social Support for Girls
Sukanya Samriddhi Account is launched with main objective of financial scheme for the marriage of Girl Child. With this small savings account scheme, Govt. has supported parents for marriage and education expenses of girl Childs. And hence, there is a great way opened for improvement of female sex ratio and women can be protected well.
Eligibility of a Girl Child
- She should have age of 10 or below.
- Must be Indian
- Only one SS account can be opened for one girl.
- If you have opened already PPF account for girl, you can have a Sukanya Samriddhi Account too.
Question: Can you please clarify whether a girl child can have both Sukanya Account and PPF? Because when I was trying to open both Sukanya Account (SSA) and PPF for my daughter with SBI, they didn’t allow opening a PPF account after opening Sukanya Account according to their Terms and Condition. I was searching online for clarification of this rule, but still failed.
Answer: A girl child can have only one SSA and only one PPF. I think, the SBI officials don’t have updated information, about PPF and Sukanya Account. If you have opened one Sukanya Account with SBI, then for opening of PPF account, you can do inquiry with ICICI or other banks.
Question: I have been working in USA for the last 5 years. I had some queries about my daughter for opening of Sukanya Account (SSA). My 3 years old daughter has Indian Citizenship rights and also her mother is Indian citizen. But, at present my wife and daughter, are staying with me in USA since June 2013. My daughter is eligible to open Sukanya A/c and her mother can sign as local guardian?
Answer: Yes, Your daughter is eligible for Sukanya Account and her mother can be local guardian.