"Sukanya Samriddhi Yojna.

Sukanya Samriddhi Yojna is an initiative of the Beti Bachao Pradhan scheme and launched by the Government of India.  The encouragement to the parents or guardians of the Girl Child to invest in a savings bank account. It is opened in a branch of India Post or authorized Commercial bank.

The rate of interest under the scheme is currently (financial year 20-21)  7.60% p.a and ranges from 5.75% - 8.05% p.a for recurring deposits under the Sukanya Samriddhi Yojana.

Key Features of the Scheme

Eligibility Criteria

The parents or legal guardians of the Girl Child can open a Saving Bank account under Sukanya Samriddhi Yojna, provided that,

• The Girl Child is a resident of India, and her age is ten years or below.
• A maximum of two accounts is allowed per family irrespective of the number of girls in the family.

Documents Required

The following document needs to be submitted by the parents or legal guardians to open a Savings Bank Account in the name of the Girl Child for Sukanya Samriddhi Yojna.

1. The application form filled up with the required details of the Girl Child and her parents or legal guardian.
2. Birth Certificate of the Girl Child and Identity and Address proof of the parent or legal guardian depending on who is opening the account.
3. Medical certificate that proves that the Girl Child is one among twins or triplets if applicable.
4. All other documents asked for by the authorities should also be submitted for approval.

On complying with the above criteria, open the account and remit the initial deposit.

What makes Sukanya Samriddhi Yojanna better than any other?

Parents secure the future of their children by investing funds for future use.  Funds are required to provide her with the best education and as an expenditure for the daughter's marriage. Of late, more and more people are opting for this scheme as it offers more benefits than other schemes.   It has thus emerged as the most popular investment scheme. The benefits of the scheme are listed below.

you may by also link -tax-on-youtube-affiliate-adsense-earning

Regular Recurring Deposit of a Small Sum of Money for Minors

The initial deposit amount under this scheme was  Rs 1,000 at the initiation stage. It was later (5^th July 2018) brought down to Rs 250.  That is the minimum amount to be deposited in the saving bank of the minor Girl Child by her legal guardian or parent every year. The maximum amount is Rs 1.5 lakhs. A minimum amount of Rs 250 will have to be paid every year for 15 years.

Default in payment of deposit within the year will cause the deactivation of the account. The 'Account under default' can be reactivated by paying  Rs 50 as a fine along with the deposit. It is reactivated, provided that payment is within the stipulated 15 years.

• Rate of Interest

The rate of interest offered under this scheme is 7.6% and is comparatively higher than any other Government scheme. Being a low investment scheme (minimum amount to deposit is Rs 250)and having a higher interest than other such schemes, its rate of Return on Investment (ROI) is comparatively higher than any scheme in its category. On every account opened on any date from 1^st October 2018 to 31^st December 2016 and interest at the rate of 8.6% is offered.

• Safe Investment

The fact that it is an initiative of the Government of India, there is a guarantee of security in investment.

• Security for the Girl Child

The scheme allows a partial withdrawal of 50% of the total amount when the Girl Child is 18 years old. The funds help in securing a better future for her by spending the same as an educational expense. Funds will be released partially from the scheme only on producing the proof of admission from the educational institution where she has enrolled herself.

• Three-fold Tax Benefits

It is an ‘EEE’ investment, which means it enjoys exemption at three stages.

Section 80C of the Income Tax Act of India allows deductions for deposits made under this scheme to a maximum limit of Rs 1.5lakhs annually. Depositors of these schemes enjoy the tax-free compounded interest. The amount received at the time of maturity is exempt from tax.

• Compound Interest

Though a small sum of money is deposit at a time, it is deposited every year for 15 years. The interest gets compounded annually. On maturity, the depositor will receive a better return on investment.

• Flexible Deposit

There is no compulsion that a person investing Rs 1.5 lakhs will have to do so every year. The only compulsion is to pay the minimum amount of Rs250.  In a bad year, the depositor can choose to pay a smaller amount, and in the next year, a higher amount to a maximum of Rs 1.5 lakhs.

Aim at empowering your Girl Child – Invest in Sukanya Samriddhi Yojna.

Frequently Asked Questions

1. Is the Sukanya Samriddhi Yojna the best scheme for the Girl Child?

Under the scheme, the Girl child attaining 18 years can access the funds and use them for her education or marriage expenses. It's a low investment giving interest higher than any other scheme of its kind. Adding to the benefits, the annual interest and the final amount on maturity are exempt from tax.

2. What will my savings total be if I could save 1000 rupees per month for 21 years under the Sukanya Samriddhi Scheme?

Given the above situation, your saving should be around Rs 5.56 lakhs on maturity.

3. What are the tax benefits available under this scheme?

Depositors enjoy tax benefits by way of exemptions under this schemes right from initial deposit up to maturity.

About us- TAX ADVISORY

We at TAX ADVISORY undertake all the work concerning license and other paperwork required by you in obtaining a loan under Sukanya Samriddhi Scheme. We want to help you build a secure future for your daughter.

If you have any queries, reach out to us.

Our experts will guide you through the entire process.

"