Sukanya Samriddhi Yojana Tax Benefit For Parents

Sukanya Samriddhi Yojana is an attractive scheme launched by the government of India, which is one of the crucial parts of the Beti Bachao Beti Padhao Program. SSY or Sukanya Samriddhi Yojana is a popular investment scheme. It does not support girl kids but also helps individuals to avail some tax benefits. The scheme is wholly designed to secure the future of girl children and gives a higher rate of interest on the deposit.

Here the parent can open the SSY account with the name of the girl child and deposit or invest cash for their girl child’s secure future. The minimum deposit amount for SSY is Rs 1000, and the maximum deposit amount is Rs 1,50,000 in the respective financial year. Nowadays, it is offering a 7.6% interest rate on the deposit, and it compounds annually.

Sukanya Samriddhi Yojana Tax Benefit For Parents

If you invest in SSY, you get tax benefits in the form of EE or the exempt-exempt-exempt. So, to understand this correctly, you can look below.

Individuals who invest in the SSY scheme are eligible to get tax benefits or exemptions under Section 80C of the Income Tax Act. And they can claim the exemption from the investment they made up to Rs 1,50,000.

The interest received or credited in the account is exempt under section 80 C of the income tax act. 

Also, when the investment matures, the money offered to the girl child at maturity is not taxable under income tax and exempt from tax.

So, if you want to secure the life of your girl child in the long run and are also willing to save some significant tax amount, you should invest in the SSY scheme.

Sukanya Samriddhi Yojana

Why Should Parents Invest In Sukanya Samriddhi Yojana?

Along with tax benefits, there are some other reasons, and these encourage investing in the SSY scheme. 

1. There Is a Simple Account Opening Process

The individual can avail a simple account opening process for their girl child. They can open the SSY account by visiting the bank or post office, whichever is nearer to offer such accounts opening. The account can be opened with a minimum of Rs250, and they can invest up to Rs 1,50,000 in a particular financial year.  

2. It Offers a Higher Rate of Interest Rate

If you compare to other types of investment options available in the market. Then you will find that SSY accounts offer a higher interest rate as they provide 7.6% that compounded annually. The best thing about this account is that the government sets up the interest rate every quarter. Hence there are higher chances to get higher ROI compared to other accounts.  

3. It Has Some Special Provisions Or Circumstances That Allow You For Premature Withdrawal

In the SSY account, premature withdrawals are allowed in exceptional circumstances. Under the girl, the child attains the age of 18 years. The scheme can be terminated, or it offers premature withdrawals after the five years of inception of the account. But the premature withdrawal is allowed only if the girl child died or had any critical medical emergency. However, the investor needs to provide some important reasons by submitting the application form stating the reasons.  

4. You Can Secure The Financial Future of Your Girl Child

The parents can use this valuable scheme of the government of India to provide a financial cushion for their girl child. They can start keeping some funds for their girl child’s marriage or her higher education. When she gets 18, she can withdraw 50% of the total deposit to complete higher education and bear some educational expenses. Also, this scheme is helpful for those investors who want to save some money to spend on their girl child’s marriage without facing any financial problem.  

What Is The Minimum Amount To Invest In An SSY Account?

As we have already discussed, the minimum amount to invest in an SSY account still deserves to have a separate discussion as many people can doubt it. So, while opening the Sukanya Samriddhi Yojana account, the investor or parent can open the account with Rs250 only. Also, once the account is opened, the investor or holder needs to invest at least Rs250 in every financial year. If the investor fails to fulfill the minimum investment requirement, the account will be considered the default. Also, the maximum deposit limit in the SSY account during a financial year is Rs 1,50,000. The depositor can deposit money in the multiple of Rs50, for example, Rs250, Rs500, or Rs1000. 

How Long do The Parents or Guardians Need to Invest in Sukanya Samriddhi Yojana?

The parents or guardians need to invest continuously 15 years from the date of commencement of SSY account for their girl child.  

What Is The SSY Account Maturity?

The SSY account or Sukanya Samriddhi Yojana account maturity will be 21 years from opening this account. Or when a girl child gets married after completing the age of 18 years. But in the case of marriage, the withdrawal needs to withdraw money before the one month of marriage or after the three months of marriage.  

Where Can You Open The SSY Or Sukanya Samriddhi Yojana Account?

Generally, you can open a Sukanya Samriddhi Yojana account in any post office near you. However, nowadays, many banks are offering the Sukanya Samriddhi Yojana account facility in their bank. Therefore you can check out the bank or post office to open this account for your girl child.  

How Can You Revive Your Sukanya Samriddhi Yojana Account When It Gets a Default Account?

It requires a minimum balance to keep it running, which is only Rs 250 in a financial year. But in this case, you still fail to maintain the minimum balance. You need to revive the account before the completion of 15 years from the account’s commencement date. You need to pay the minimum deposit balance, which is Rs250, and the penalty charges, which are Rs50 for each defaulted year. 

Conclusion

So, I hope now everything about Sukanya Samriddhi Yojana is cleared. You have learned how you can get a tax benefit from Sukanya Samriddhi Yojana as a parent. If you have a girl child, you should open this account, but you are allowed two SSY accounts per family. That means if you have three girl children, then you can only open two SSY accounts for any of your girl children. However, if you have a triplet or a twin girl child born after the first girl child. In this case, you are allowed to enjoy three Sukanya Samriddhi Yojana accounts per family. 

If you have any doubt about this essential and popular investment scheme of the government of Indian. Then you can ask that in the comment box and share it with those parents interested in saving their girl child’s financial cushion. 

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