Sukanya Samriddhi Yojana: Income Tax Saving with Attractive Returns: Sukanya Samriddhi Yojana (SSY) is a tax-free small-saving scheme for girl students. During the quarter from January to March 2024, the interest rate on this scheme is 8.2%. Apart from this, tax exemption is also available under Section 80C on investments up to Rs 1.5 lakh every year. Not only this, the interest received on it is also tax-free. Due to all the features, Sukanya Samriddhi Yojana is a good investment option for parents of daughters.
The account can be opened for a daughter up to 10 years of age
To invest in Sukanya Samriddhi Yojana, you must be a resident Indian and the parent or legal guardian of the girl child. To be eligible for Sukanya Samriddhi Yojana, the age of the daughter should be 10 years or less. That means you can open an SSY account from the birth of your daughter till the age of 10 years. Two Sukanya Samriddhi accounts can be opened for a maximum of two girls.
Sukanya Samriddhi's account can be opened in the post office
You can start a Sukanya Samriddhi account with a minimum deposit of Rs 250. In subsequent years, you will have to deposit a minimum of Rs 250 in any financial year. The maximum deposit amount in a financial year can be up to Rs 1.5 lakh. You have the option to invest in a lump sum or multiple installments.
The interest rate of Sukanya Samriddhi Yojana has been fixed at 8.2% for the January- March 2024 quarter. Keep in mind that the interest rate in this scheme is updated every quarter. That means it keeps changing. Generally, the interest rate of this scheme remains better as per the market.
Maturity period: You have to deposit money in Sukanya Samriddhi account for 15 years from the date of account opening. But this account will mature after 21 years from the date of opening. Apart from this, after the daughter turns 18 years of age, there is also an option to close the account for her marriage.
Interest on Sukanya Samriddhi Account is calculated based on the lowest amount deposited in the account from the fifth day of every month till the end of the month. The interest amount is deposited in the account at the end of every financial year.
Before maturity, up to 50% of the deposited amount is allowed to be withdrawn for the education of the daughter. This permission is given only during the financial year in which the daughter passes class 10th or before she turns 18 years of age. After 5 years of opening the account, it’s premature closure is allowed in certain circumstances, such as the death of the account holder, serious illness or death of the parent or guardian operating the account.
Sukanya Samriddhi Yojana is a very beneficial scheme for tax saving. 'Triple E' (Exempt-Exempt-Exempt) tax benefit is available on investments made in this. That is, tax exemption is available under Section 80C of the Income Tax Act on amounts up to Rs 1.5 lakh deposited during every financial year. Apart from this, the interest received on it every year and the amount received on maturity is also tax-free. There is no tax to be paid even on partial withdrawal from the Sukanya Yojana account. Your money is completely safe in the Sukanya Samriddhi Account because this scheme is run by the Government of India. However, there is no facility to take any loan against the amount deposited in SSY accounts.
The interest rate on Sukanya Samriddhi Yojana is revised every quarter. Since the inception of the scheme, the maximum interest received in Sukanya Samriddhi Yojana till now has been 9.2%, while the minimum interest rate of the scheme has been 7.6%. For the sake of calculation (SSY calculator), let us assume that the average interest rate on your investment during the entire period of 21 years is 8%. In such a situation, if you invest a maximum of Rs 1.5 lakh every year (or Rs 12,500 per month) in SSY for 15 years, then your daughter will get approximately Rs 70 lakh after 21 years, that too completely tax-free!
