SSA-Sukanya Samriddhi Account
Sukanya Samriddhi Account
Sukanya Samriddhi Yojna is a deposit scheme for girl children for their secure future. SSA is launched in the year 2015 as a part of the ‘Beti Bachao Beti Padhao’ campaign by Indian Prime Minister Narendra Modi. The accounts can be opened with any authorized commercial banks or with any India Post office. This post will cover the following queries about the SSA scheme.
What is Sukanya Yojana scheme?
What is the eligibility to open Sukanya Yojana scheme?
How many years need to pay for Sukanya Samriddhi Yojana?
Can Sukanya Samriddhi Account open online?
What is the benefit of the Sukanya Samriddhi scheme?
Is Sukanya samriddhi better than PPF?
How much money we can deposit in Sukanya Yojana?
Is it possible to check the Sukanya Samriddhi account balance online?
Can both parents claim Tax deficits for Sukanya Samriddhi Yojana?
Who can withdraw money from the Sukanya Samriddhi Account?
Can we deposit money in Sukanya Samriddhi Account online?
Is Aadhaar mandatory for Sukanya Samriddhi Yojana?
Is SSY a good investment?
Tax benifits for sukanya samriddhi yojana?
KEY POINTS:
- Sukanya Samriddhi Yojana Account is only for the Indian citizen girl children.
- The maximum age limit to start an account is 10 years.
- The maturity of the account is after 21 years.
- Need to deposit money into the account for 15 years.
- The minimum age for the account holder to withdraw the amount is 18 years.
- The amount deposited and corpus withdrawn is exempted from Tax.
- A parent can open a maximum of 2 accounts if they have 2 girl children and 3 accounts if they have girl twins.
- Once the account is opened it is not possible to change the guardian named in the account.
- Tax exemption under 80C can claim only for one guardian, whose name is provided in the account opening form.
- SSA provides the withdrawal option of up to 50% of the accumulated amount to meet the financial requirement of a girl’s children like marriage and higher education.
- No loan is provided against the amount in the SSY account.
What is Sukanya Yojana scheme?
Sukanya Samriddhi Yojana is a small deposit scheme exclusively for a girl child for their bright future. The scheme is launched with an intention to meet the education and marriage expenses of a girl child. The Sukanya Samriddhi Account offers a high-interest rate than FD and Tax benefits under 80c. The investment in this scheme can do online or offline directly to banks and post-office.
Sukanya Samriddhi Yojana (SSY) account will mature only after 21 years from the date of its opening or up to the marriage of the girl. The minimum contribution for this scheme is Rs. 250, and parents will get tax benefits up to Rs. 1.5 lakh under section 80C of the Income-tax Act.
What is the eligibility to open Sukanya Yojana scheme?
As per the government guidelines following are the eligibility to open a Sukanya Yojana scheme.
- The age of the girl child should be less than 10 years.
- The account holder should be an Indian citizen and need to a resident in India at the time of account opening.
- To continue the account the account holder has to remain in India until maturity or closure of the account.
How many years need to pay for Sukanya Samriddhi Yojana?
Contributions to SSA need to continue for 15 years, however, SSA has a tenure of 21 years from the date of opening or up to the time of marriage of a girl who becomes a major. The account can be opened any time before the girl child becomes 10 years old
Can Sukanya samriddhi account open online?
Currently, Sukanya Samriddhi Yojana (SSY) account can’t open online. Need to visit the authorized bank branch or Post Office in person with the required documents and need to fill the form and submit there. Once the account is opened, the account holder or parents can set the standing instructions for the online payment. Need to deposit a minimum amount every year, to continue the account, otherwise, the account will come under the default list.
What is the benefit of the Sukanya Samriddhi scheme?
- It is a government secured and guaranteed investment instrument for the girl child and it gives a higher rate of returns than FD or PPF.
- This scheme provides significant Tax Savings for parents or legal guardians under Section 80C of the Income Tax Act 1961 for rupees.
Is Sukanya samriddhi better than PPF?
- The interest rate for SSY usually remains higher than PPF.
- SSY can open only in the name of the girl child, PPF can open for any Indian citizen.
- Both will have a payment period of 15 years.
- PPF will mature in 15 years but SSY needs to wait for 21 years.
- Both will give the TAX benefits under 80C.
- The minimum amount in a year for SSY is Rs 250 and for PPF is Rs 500.
How much money we can deposit in Sukanya Yojana?
- The minimum deposit rupees in a year is Rs 250 and a maximum of Rs 1.5 lakh.
- Deposit into the account can be done by the natural or legal guardian or any other person.
- When a girl’s child turns 10 years, she can operate the account herself.
Is it possible to check the Sukanya Samriddhi Account balance online?
SSY account balance can be checked in the account passbook which is available online and also can check offline. The entire transaction record will be available in the online portal.
Can both parents claim Tax deficits for Sukanya Samriddhi Yojana?
Tax exemption claims can be done only for one depositor under Section 80C of the Income Tax Act. Either a parent or a legal guardian is eligible for a tax exemption claims, not both. The parent or legal guardian can open a maximum of two Sukanya Samriddhi Accounts if they have two girl children and three for twin or triplet girl children.
Who can withdraw money from the Sukanya Samriddhi Account?
Withdrawal of up to 50% of the accumulated amount at the end of the preceding financial year is allowed, to meet the financial requirements of the account holder. Two reasons which account holders can declare for the withdrawal are higher education finance requirement and marriage of the account holder. Withdrawal is allowed only once the following conditions are met.
- The age of the account holder should be minimum of 18 years.
- The account holder needs to have completed the tenth standard.
Can we deposit money in the Sukanya Samriddhi account online?
Yes, the account holder or the guardians can deposits the money to the Sukanya Samriddhi account through online with the help of the Net Banking facility. Also, the Passbook details like deposit transactions can be monitored online. In general account, holders can deposit money to an account through cheque, demand draft, or through online banking.
Is Aadhaar mandatory for Sukanya samriddhi Yojana?
The account can be opened on the basis of submission of the other required documents like birth certificate, identity, and address proof parents/legal guardian. Aadhaar can use as one of the addresses proof documents to open the Sukanya Samriddhi account.
What are the documents required for SSY?
Documents required for the opening of the Sukanya Samriddhi Yojana is as below.
- Filled and signed SSY Account Opening form.
- Birth Certificate of the girl child, with name on it.
- Photograph of the parent/ legal guardian of the account holder.
- KYC Documents of the parent/ guardian- Identity & Address proof.
Can we take loan on Sukanya samriddhi Yojana?
Currently, no loans can be borrowed against the amount in the Sukanya Samriddhi Yojana account . As per the current rule investment made towards the Sukanya Samriddhi Yojana account cannot be held as security for a loan.
Is SSY a good investment?
Yes, Sukanya Samriddhi Yojana is a good investment as it gives a higher rate of interest than PPF. As it is locked for very long without the facility of early withdrawal, the amount will be safe and secure for the future of the girl children. As the amount can be withdrawn by the girl once she becomes 18 years, it can be used for their future requirements.
Tax benifits for sukanya samriddhi yojana?
Investments made into the Sukanya Samriddhi Yojana account are eligible for deductions under Section 80C. The maximum subject to a cap of Rs 1.5 lakhs in a financial year. The interest which gets compounded annually is also exempted from tax. The corpus amount received upon maturity is also exempted from tax payment.
Tax benefits can claim by one parent or the legal guardian of the account holder.
CONCLUSION:
As Sukanya Samriddhi Yojana is a small deposit scheme exclusively for a girl child and account holder have the flexibility in varying the yearly deposit amount it is one of the best investment schemes for bright future of girl child. The scheme is launched with an intention to meet financial requirements for the education and marriage expenses of a girl child. Also, SSA provides the withdrawal option of up to 50% of the accumulated amount at the end of the preceding financial year, to meet the financial requirements of higher education and marriage of the matured girl who passed 10th and completed 18 years of age. The SSY offers a high-interest rate than PPF and also provides tax benefits under 80c for the invested amount.
Please share with all parents who have a girl child and open the SSY account as soon an early possible for the kid’s bright future.
Thanks and regards.
Harry.
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