Sukanya Samriddhi Yojana (SSY) Tax Benefits, Post Office (2023)

Sukanya Samriddhi Yojana (SSY): In accordance with the aforementioned goals, Prime Minister Narendra Modi introduced the Sukanya Samriddhi Yojana (SSY) as a program under the Beti Bachao Beti Padhao campaign, which directly translates to “Girl Child Prosperity Scheme.” In Panipat, Haryana, it was introduced on January 22, 2015.

A government savings program known as the Sukanya Samriddhi Yojana was developed with the goal of helping female children as part of the “Beti Bachao – Beti Padhao” effort.

Under this program, a girl’s parent or legal guardian who is 10 years old or younger may open an account. This plan comes with a higher interest rate and a number of tax advantages.

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Sukanya Samriddhi Yojana (SSY)

The Government of India began a social effort on January 22, 2015, to address the issue of the dropping child sex ratio in our nation. The Beti Bachao Beti Padhao (BBBP) movement promotes the idea that females should be educated and saved. The Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Human Resource Development are jointly in charge of this national effort.

BBBP aims at achieving the following:

To stop gender discrimination against children and abolish the practice of sex determination.
To ensure the survival and protection of girls.
To ensure higher participation of girls in education and other areas.

SSY attempts to address education and marriage, two significant issues affecting girl children. By assisting the parents of a girl child in creating a fund for their kid’s good education and worry-free marriage expenditures, it aims to secure a bright future for girl children in India. The Sukanya Samriddhi Account was created by SSY specifically for this use.

Read Also: Vishwakarma Yojana 2023

Eligibility Criteria For Sukanya Samriddhi Yojana

Here are the Sukanya Samriddhi Yojana details about the eligibility criteria-

The account can be opened by a parent or legal guardian of the girl child
The girl child must be below the age of 10 year
Only one account is allowed for a girl child.
A family can open only 2 SSY scheme account

Sukanya Samriddhi Yojana age limit and maturity period

Opening Sukanya Samriddhi Yojana (SSY) account

There can be only one SSY account per girl child. Any authorized commercial bank branch or post office can open SSY accounts. Between the time a girl is born through the age of ten, it can be opened at any time.

Beneficiary of Sukanya Samriddhi Yojana (SSY)

From the time the account is opened until it matures or is closed, any girl child who resides in India is a beneficiary under the SSY.

Payables under the Sukanya Samriddhi Yojana (SSY)

Until the girl child turns 18 years old, the guardian may deposit money and manage the account. After turning 18 years old, the girl child will have to handle the SSY account by law. The minimum deposit amount for an SSY account is Rs. 250 (formerly Rs. 1,000), with subsequent deposits in multiples of Rs. 50, and the maximum deposit amount is Rs. 1,50,000 every fiscal year for a period of up to 15 years. Cash, checks, demand drafts, and online transfers are all acceptable forms of deposit.

Interest on deposits Sukanya Samriddhi Yojana

The interest rate is 8% p.a. for the second quarter of FY 2023–2024, or 1 July–30 September 2023. If the whole deposit in a “Account under Default” (where a minimum of Rs. 250 annually has not been placed) is not regularized within the required period of time, interest will continue to accrue until the account’s maturity date. A penalty of Rs. 50 per year of default can be paid in order to regularize a “Account in Default” within 15 years of account inception.

from the SSY’s tenure is up, or 21 years from the account’s inception, no interest is due. After the girl child leaves India and ceases to be an Indian resident or citizen, no interest is paid. Any deposit placed in excess of the annual maximum cap, which is Rs. 1,50,000, will not earn interest and may be withdrawn at any time by the depositor.

Maturity period of Sukanya Samriddhi Yojana (SSY)

The maturity term for SSY is either upon her marriage after becoming 18 years old or 21 years from the account opening. However, only 15 years’ worth of donations are required. After then, even if no additional deposits are made, the SSY account will continue to accrue interest until it matures.

Benefits of Sukanya Samriddhi Yojana

Affordable Payments: A SSY account must have a minimum deposit of Rs. 250 every fiscal year to be maintained. Up to Rs. 1.5 lakh can be deposited at your convenience per fiscal year. Everyone in the society appears to be able to make the payments. Even if you miss a year’s worth of payments, the account will still be kept open and a penalty of Rs. 50 will be added to the missing minimum payment of Rs. 250.

Educational Expenses Covered: You may withdraw 50% of the account balance as of the end of the preceding financial year to pay for your girl child’s college costs. This can be obtained by providing admissions documentation.

Attractive Interest Rates: SSY accounts have historically offered higher interest rates than other government-sponsored programs. The rate is currently 8% every year.

Guaranteed Returns: Since SSY is a government-backed program, returns are assured when it matures.

Convenient Transfer: Anywhere in India, the SSY account can be switched from a post office to a bank or vice versa.

Tax benefits of Sukanya Samriddhi Yojana

The SSA has also been given a few tax advantages in order to promote investments in SSY:

Section 80C allows for deductions for investments made in the SSY plan, up to a maximum of Rs 1.5 lakh.
According to Section 10 of the Income Tax Act, the interest that is accrued on this account and is compounded annually is also not subject to taxation.
According to Section 10 of the Income Tax Act, the interest that is accrued on this account and is compounded annually is also not subject to taxation.

How to Invest in Sukanya Samriddhi Yojana (SSY)?

Investors can apply for Sukanya Samriddhi Scheme through the post offices or participating public and private banks. Investors need to submit a few documents and follow the process listed below:

Sukanya Yojana Details : Documents required to open an account

Birth certificate of the girl child
Photo ID of applicant parent or legal guardian
Address proof of applicant parent or legal guardian
Other KYC proofs such as PAN, Voter ID

Process of Application

Download the application form from either RBI website, Indian Post website, participating public sector and private bank’s official website
Fill up the form with key details of the girl child and a parent or legal guardian. Following are the key mandatory fields to be filled in Sukanya Samriddhi Yojana, scheme form
Primary Account Holder- Name of Girl Child
Joint Holder- Name of A parent or legal guardian
Initial deposit amount
Cheque/DD Number and Date for the initial deposit
Date of Birth of girl child along with Birth Certificate details
Identity of Parent or legal guardian such as Driving License, Aadhaar, etc.
Present and Permanent Address (as per ID document of the parent or legal guardian)
Details of other KYC proofs such as PAN, Voter ID card, etc

How to Open the Scheme Offline?

Any participating bank or Post Office branch can open a Sukanya Samriddhi Yojana (SSY) account. Follow the instructions listed below to open the account.

Go to the bank or Post Office where you want to open the account.
Fill out the application form with the necessary information and attach any supporting papers.
Pay the initial down payment in cash, by check, or by demand draft. The amount payable may range from 250 to 1.5 lakh rupees.
The bank or the post office will handle the processing of your application and payment.
Your SSY account will be enabled following processing. For this account, a passbook will be sent as a memento of the occasion.

How to Open the Scheme Online?

You must first download the IPPB app to your smartphone in order to make online payments to your SSY account. With the help of this software, you may create recurring requests for a certain sum to be transferred online into your SSY account. Here’s a step-by-step guide to doing it:

Your bank account should transfer funds to the IPPB account.
On the IPPB app, go to DOP Products and choose the Sukanya Samriddhi Yojana account.
Along with your DOP client ID, provide your SSY account number.
Select the length of the instalment and the payment amount.
When the payment method has been successfully set up, the IPPB will notify you.
You’ll receive a notification each time the app sends money.

Sukanya Samriddhi Yojana Withdrawal Rules

The SSY withdrawal rules are as follows-

After the SSY account duration is completed, the complete sum (including the interest) can be withdrawn by the girl child.
The documents required for the Sukanya Samriddhi Yojana account withdrawal are as follows-

Application form for the withdrawal of the amount.
ID and Address proof
Citizenship documents
All the documents/fees receipt required for the submission while taking admission will be required for the withdrawal.
The withdrawal is permitted for the higher education’s purpose if the girl has attained the age of 18 and has also completed the 10th standard. Note the money should be used for the fees/charges applied during admission.
The maximum amount available for withdrawal is 50% of the amount that is available in the previous year. Note the amount is available for withdrawal in 5 instalments or even in a lump sum.

Sukanya Samriddhi Yojana (SSY) FEATURES

Attractive interest rate of 8%, that is fully exempt from tax under section 80C.
Minimum Rs. 250 can be invested in one financial year
Maximum investment of Rs. 1,50,000 can be made in one financial year
If the minimum amount of Rs 250 is not deposited in any financial year , a penalty of Rs 50/- will be charged
Deposits in an account can be made till completion of 14 years, from the date of opening of the account
The account shall mature on completion of 21 years from the date of opening of the account, provided that where the marriage of the account holder takes place before completion of such period of 21 years, the operation of the account shall not be permitted beyond the date of her marriage
Passbook will be issued to customers.
Withdrawal Facility
- To meet the financial requirements of the account holder for the purpose of higher education and marriage, account holder can avail partial withdrawal facility after attaining 18 years of age.
- If the beneficiary is married before maturity of account, account has to be closed.

Sukanya Samriddhi Yojana application form

Here is how the SSY account opening form looks like:

In order to fill the form, you can follow these steps:

Under ‘To The Postmaster/Manager’, mention the Post Office/bank branch and postal address details.
Paste the applicant(s) photograph to the right.
Next to ‘I/We’, mention the applicant’s name and in the following space, mention Sukanya Samridddhi Yojana.
Enter the deposit amount in number and words and tick the mode of payment, whether cash, cheque or DD. In the case of a cheque or DD, write down the number and date mentioned on it.
Enter the name of depositor (i.e. name of the girl child) and date of birth
Enter the name of guardian and date of birth, Aadhaar number and PAN number of the guardian
Enter the address and contact details
Mention the type of account and details of the birth certificate of the depositor
Enter the details of KYC documents attached
Put the signature with the name.
Enter the nomination details.
Get the signature of two witnesses if the applicant is illiterate.
Further, add the date, place, and signature at the end of the nomination section.

Sukanya Samriddhi Yojana (SSY) Documents Required

Birth certificate of the girl child
Photo ID of applicant parent or legal guardian
Address proof of applicant parent or legal guardian
Other KYC proofs such as PAN, and Voter ID.
SSY account opening form.
A medical certificate has to be submitted in case multiple children are born under one order of birth.
Any other documents that are requested by the bank or post office.

Sukanya Samriddhi Yojana ACCOUNT CLOSURE

Closure on Maturity: Following a twenty-one-year period from the date of opening, the account will mature. The account holder will receive the outstanding balance and any applicable interest.

Closure before the age of 21 is allowed if the account holder requests it on paper and provides a notarized declaration stating that the applicant will be at least 18 years old when the marriage takes place. The document must be properly signed and printed on non-judicial stamp paper, and it must be attested by the notary.

Sukanya Samriddhi Yojana RATE OF INTEREST

Presently, accounts opened under SSY earns an annual interest of 8.00% . However, the interest rate is notified quarterly by Government of India.
Interest will be compounded yearly and credited to the account at the end of the financial year.
Interest for one calendar month will be calculated on the lowest balance between close of 5th day & last day of the month.
No interest will be payable once the account completes twenty-one years from the date of opening.

Conclusion:

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