Benefits of Sukanya Samriddhi Yojana

Benefits of Sukanya Samriddhi Yojana

Benefits of Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana benefits provide a stable financial foundation for girls. It is a savings scheme by the Government of India empowers parents to help secure the future of their girl child.

It was introduced as part of the “Beti Bachao Beti Padhao” campaign to promote gender equality and ensure financial support for the education and marriage expenses of the girl child.

But what exactly are Sukanya Samriddhi Yojana benefits? Read the blog to learn about SSY, including Sukanya Samriddhi Yojana eligibility and age criteria.

What is the Sukanya Samriddhi Yojana (SSY)?

Sukayana Smamriddhi Yojana is a government-backed savings account scheme for the girl child. It offers a tax-free interest rate of 7.6% per annum and you can open it in any bank or post office in India. The minimum deposit amount is Rs. 250 per month, and the maximum is Rs. 1.5 lakh per year.

While opening the account in the name of a girl child, she should be less than 10 years old. Once the girl child reaches 21 years, the account can be closed.

Sukanya Samriddhi Yojana Highlights

The sukanya samriddhi yojana benefits the girl child in providing an excellent opportunity to save for the future.

The scheme plays a vital role in empowering girls and supporting their education and future aspirations; here are the highlights of the scheme-

  • Promotes the welfare and financial security of the girl child.
  • It can be opened for girls under the age of 10 years.
  • It offers an attractive interest rate (currently 7.6% p.a.).
  • Deposits can be made for 15 years till the account matures (21 years).
  • Tax benefits are available under Section 80C of the Income Tax Act.
  • Partial withdrawals are allowed after the girl reaches 18 years for higher education or marriage.

Benefits of Sukanya Samriddhi Yojana Scheme

Both post offices and banks offer similar sukanya samriddhi yojana benefits. They both aim to help your girl child have a safer future. With this goal in mind, this scheme offers several significant benefits, some of which are listed below-

  • Financial Security for Girl Child: SSY provides a dedicated savings platform to ensure financial security for the child’s future needs, such as education and marriage expenses.
  • Attractive Interest Rates: The scheme offers higher interest rates than many other savings schemes, making it a lucrative long-term investment option.
  • Tax Benefits: One of the sukanya samriddhi yojana benefits is that there are tax benefits. Contributing to the scheme makes you eligible for tax deductions under Section 80C of the Income Tax Act, reducing the tax burden for parents or legal guardians.
  • Long-term Savings: The scheme encourages disciplined savings for 15 years, helping parents save funds overtime.
  • Account Flexibility: Parents or legal guardians can choose the deposit amount, with a minimum of Rs. 250 and a maximum of Rs. 1.5 lakh per financial year.
  • Partial Withdrawals: Partial withdrawals are allowed once the girl reaches 18, aiding in funding higher education or meeting other financial requirements.
  • Account Transfer: In case of relocation, you can transfer the SSY account to any authorised bank or post office across India.
  • No Market Risk: SSY is a government-backed savings scheme, ensuring the safety and security of the invested amount, free from market fluctuations.

Sukanya Samriddhi Yojana Tax benefits

While looking at the sukanya samriddhi yojana benefits, you cannot miss the tax benefits that come with the scheme.

This scheme provides a haven for savings but also offers tax exemptions on contributions, interest earnings, and maturity proceeds. The tax benefits include:

  • Tax Deduction under Section 80C: Contributions made towards the SSY account are eligible for a tax deduction under Section 80C of the Income Tax Act. The maximum deduction allowed is up to Rs. 1.5 lakh per financial year.
  • Tax-free Interest: The interest earned on the SSY account is entirely tax-free. It is compounded annually and credited to the account until maturity.
  • Tax Exemption at Maturity: The final maturity amount, including the principal and accrued interest, is tax free, ensuring that the accumulated corpus remains untouched by taxation.

Sukanya Samriddhi Yojana Tax benefits

Features of Sukanya Samriddhi Yojana

The SSY is a good option for parents looking to save for the future of their girl child. If you are considering saving for your daughter’s future, SSY is an excellent option.

The scheme offers several attractive features, like tenure, tax deduction, and attractive interest rates. SSY also features reasonable interest rates and partial withdrawals, and account revival.

Sukanya Samriddhi Yojana Interest Rate

The Government of India sets the interest rate on Sukanya Samriddhi Yojana (SSY), subject to quarterly revisions.

The interest rate is higher than many other savings schemes, making it an attractive investment option for parents looking to save for their girl child’s future.

Sukanya Samriddhi Yojana Interest Calculation

You can check your SSY maturity amount and interest earned using an Sukanya Samriddhi Calculator. You will have to enter the yearly investment amount, your girl child’s present age and the year when you started investing in SSY (for new account it will be the present year)

The interest under the Sukanya Samriddhi Yojana (SSY) is computed utilising the subsequent formula: 

Interest Earned = Maturity Amount – Total Principal Amount Invested

Note :

  • The interest gets compounded annually, which means it is calculated on the principal amount at the end of each financial year.
  • It’s important to note that the interest rate can change from time to time as per government notifications so the interest calculation will be based on the prevailing interest rate during each financial year. The interest gets credited to the SSY account annually, contributing to the compounding effect and helping to grow the savings.

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FAQs

Q. What is the advantage of Sukanya Samriddhi Yojana?
A.
Sukanya Samriddhi Yojana is a government-backed savings scheme for girls that offers tax benefits and a high-interest rate.

Q.How can I get maximum benefit from Sukanya Samriddhi Yojana?
A.
To get the maximum benefit from Sukanya Samriddhi Yojana, start investing as early as possible and make regular contributions.

 Q.Is Sukanya samriddhi maturity tax free?
A.
Yes, one of the Sukanya Samriddhi Yojana benefits is that the maturity amount is tax free under Section 80C of the Income Tax Act, 1961.

Q.Can both parents claim Sukanya Samriddhi Yojana tax benefit?
A.
Yes, both parents can claim the Sukanya Samriddhi Yojana tax benefit.

Q.Is Sukanya Yojana eligible for 80C?
A.
Yes, Sukanya Samriddhi Yojana is eligible for Section 80C of the Income Tax Act, 1961.

Q.Is Sukanya Samriddhi Yojana tax free in new tax regime?
A.
Yes, Sukanya Samriddhi Yojana is tax free under the new tax regime. The interest earned and the maturity amount are tax free under the new tax regime.

Q.Can Sukanya Samriddhi Account be transferred from one branch to another?
A.
A Sukanya Samriddhi Account can be transferred from one branch to another.

 Q.What are the transfer charges for Sukanya Samriddhi Yojana?
A.
The transfer charges for Sukanya Samriddhi Yojana are usually around Rs. 50. However, it varies depending on the bank or post office.