Sukanya Samriddhi Yojana Tax Benefits

The Sukanya Samriddhi Yojana offers a host of benefits to the parents/ guardian and the girl child. Moreover, it also allows the investors to save on taxes and create a financial cushion for their girl child for the long-term. Thus, if you are a parent of a girl child then make sure that you invest in this option of investment. The parent can open a Sukanya Samriddhi Yojana account in the name of the girl child. An individual can open the account anywhere in India before the girl child turns 10 years old. The minimum amount of deposition can be as low as Rs.1000 whereas, the maximum amount of deposition can range up to Rs.1.5 lakh in a financial year. Currently, the interest rate offered by Sukanya Samriddhi Yojana is 7.6% per annum, compounded annually.

Let’s take a look at the tax benefits offered by Sukanya Samirddhi Yojana.

Tax Benefits Under Sukanya Samriddhi Yojana

The Sukanya Samirrdhi Yojana offers tax benefits in EE format i.e. exempt-exempt-exempt. This means:

• The investment made towards the SSY scheme is eligible for tax exemption under Section 80C of the Income Tax Act. The tax exemption is subject to a maximum investment of Rs.1.5 lakh in a year into the scheme.

• The accrues interest is compounded annually and credited to the account. The accumulated interest is also tax exempted U/S 80C of the Income Tax Act.

• The maturity amount offered to the girl child is not taxable and is exempted from tax.

The tax provisions offered by SSY ensures that the investors can save on taxes and can accumulate a string financial cushion for their girl child in the long-term.

People also read: Child Education Plan

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

VIEW PLANS

*Standard T & C Apply

Why You Should Consider Investing in Sukanya Samriddhi Yojana?

Apart from providing financial protection to the girl child, there are many different benefits offered by SSY. Let’s take a look at it.

1. Simple Process of Opening the Account

   An individual can open the Sukanya Samriddhi Yojana Account is a very simple and easy process.  To open the account of SSY one needs to make a minimum deposition of Rs.250 and can make an investment up to a maximum of Rs.1.5 lakh in a financial year.

2. Helps to Create a Financial Cushion for the Girl Child

   With the help of Sukanya Samriddhi Yojana, the parent of the girl child can create a financial backup for their child right from the beginning. Moreover, the scheme is a lucrative option of investment as the accumulated funds can be used to finance the higher education of the girl child. In Sukanya Samriddhi Yojana Scheme, once the girl turns 18 years old she can withdraw 50% of the balance from the account to meet the educational expenses.

3. Premature Withdrawals can be Made Under Special Circumstances

   Premature withdrawals are allowed under the scheme when the girl child reaches the age of 18 years. Also, the scheme allows for premature withdrawal after completion of 5 years from the date of inception in case of an emergency, like the death of the parent of the girl child or any type of medical emergency.  However, it is compulsory to submit the application form stating the reason for premature withdrawal to withdraw funds from the scheme.

4. Attractive Interest Rate

   As compared to the other investment options, the Sukanya Samriddhi Yojana offers an attractive interest rate of 7.6%, compounded annually. The government of India fixes the interest rate of Sukanya Samriddhi Yojana and is revised every quarter.  

People also read: Sukanya Samriddhi Yojana Calculator

Banks Offering SSY

SSY Calculators

Indian Overseas Bank Sukanya Samriddhi Yojana

IndusInd Bank Sukanya Samriddhi Yojana

Yes Bank Sukanya Samriddhi Yojana

Bank of India Sukanya Samriddhi Yojana

Kotak Bank Sukanya Samriddhi Account

Andhra Bank Sukanya Samriddhi Account

UCO Bank Sukanya Samriddhi Yojana

IDBI Bank Sukanya Samriddhi Yojana

Allahabad Bank Sukanya Samriddhi Yojana

Central Bank of India Sukanya Samriddhi Yojana

Indian Bank Sukanya Samriddhi Yojana

Union Bank of India Sukanya Samriddhi Yojana

Axis Bank SSY (Sukanya Samriddhi Yojana)

PNB Bank SSY (Sukanya Samriddhi Yojana)

Bank of Baroda Sukanya Samriddhi Yojana

ICICI Bank Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana HDFC

SBI Sukanya Samriddhi Yojana

Expand

Indian Bank- Sukanya Samriddhi Yojana Calculator

Sukanya Samriddhi Yojana- Central Bank of India Calculator

Canara Bank- Sukanya Samriddhi Yojana Calculator

Bank of Maharashtra- Sukanya Yojana Calculator

Sukanya Samriddhi Yojana Calculator Bank of India

Sukanya Samriddhi Yojana Calculator - Union Bank

Sukanya Samriddhi Yojana Calculator-UCO Bank

Sukanya Samriddhi Yojana Calculator - State Bank of India

Sukanya Samriddhi Yojana Calculator – Punjab National Bank

Sukanya Samriddhi Yojana Calculator - Indian Overseas Bank

Sukanya Samriddhi Yojana Calculator - Bank of Baroda

Sukanya Samriddhi Yojana Calculator ICICI

Expand

Wrapping it Up!

Children often cherish gifts given by their parents. Even though they might not seem entirely happy with some of these gifts initially they will release the actual value of the gift in the long-term and will thank you for it. So, make sure that you take advantage of these investment opportunities available to you and secure the financial future of your child. With Sukanya Samriddhi Yojana you can provide right financial protection to your baby girl and ensure that all her future needs are taken care of even in your absence.