Benefits of opening Sukanya Samridhi Account
Prime Minister Narendra Modi has Launched Sukanya Samridhi Yojna’ with the vision to provide for Girl Child Education and her Marriage Expense
What is it?
Sukanya Samridhi Account Scheme is a small deposit scheme for girl child, as part of ‘BetiBachaoBetiPadhao’ campaign, which would fetch yearly interest rate of 9.1 per cent and provide income tax deduction Under section 80C of the Income TaxAct,1961.
Requirement / Eligibility
1. For this scheme Depositor is an individual who on behalf of a minor girl child of whom he or she is the guardian and deposits amount in account opened under this scheme.
Who can be ‘Guardian’ under this Scheme?
In relation to a minor girl Child Guardian means
(i) either father or mother; and
(ii) where neither parent is alive or is incapable of acting, a person entitled under the law for the time being in force to have the care of the property of the minor.
2. Depositor cannot open multiple or more than one account in the name of a Girl Child.
3. Natural or legal guardian of a girl child allowed to open one account each for two girl children’s.
4. The account may be opened by the natural or legal guardian in the name of a girl child from the birth of the girl child till she attains the age of ten years and any girl child.
5. Scheme is been commenced from 02.12.2014.
6. Grace Period: For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 & 1.12.2004 can open account up to 1.12.2015.
7. Under this scheme Interest rate is not fixed and Government will declare on yearly basis the Interest on accounts opened under these rules. For the Financial Year 2014-15 Govt. has declared Interest Rate of 9.10% vide Notification F.NO. 2/3/2014.NS-II, DATED 20-1-2015 and expected to decrease in coming year.
1. Interest after Maturity of account- If account is not closed after maturity, balance will continue to earn interest as specified for the scheme from time to time.
2. Interest Compounding Monthly/ Yearly – Interest will be compounded yearly and will be credited to account till the account completes fourteen years from the date of opening.
3. Account holder opting for monthly interest -, the same shall be calculated on the balance in the account on completed thousands, in the balance which shall be paid to the account holder and the remaining amount in fraction of thousand will continue to earn interest at the prevailing rate.
4. Maximum and Minimum Deposit- The account may be opened with an initial deposit of Rs 1000/- and thereafter any amount in multiple of one hundred rupees may be deposited subject to the condition that a minimum of one thousand rupees shall be deposited in a financial year but the total money deposited in an account on a single occasion or on multiple occasions shall not exceed one lakh fifty thousand rupees in a financial year.
5. Term Period – Deposits can be made till completion of fourteen years from the date of opening of the account.
6. The maturity of the account is 21 years from the date of opening of account or if the girl gets married before completion of such 21 years.
7. No Deposit for the period from 15th to 21st Year of account.
8. Deposit can be made in cash or by cheque or demand draft.
9. Who can Operation the account and can the girl child operate the account?
(1) The account shall be opened and operated by the natural or legal guardian of a girl child till the girl child in whose name the account has been opened attains the age of ten years.
(2) On attaining age of ten years, the account holder that is the girl child may herself operate the account. however, deposit in the account may be made by the guardian or any other person or authority.
10 Tax Benefit – The amount deposited towards Sukanya Samriddhi Account is deductible under section 80C of Income tax Act,1961 upto Rs.1.5 lakhs as notified by Notification No. 09/2015 dated 21.01.2015.
11. Amount deposited in this account will be counted in overall limit of Rs. 1.50 Lakh under section 80C.
12. Interest earned in this scheme as well as maturity amount is exempt from Income Tax wef F.Y. 2014-15