Anupama Nair
www.mediaeyenews.com
The welfare of the girl child is a topic close to my heart. In all countries, girls are not treated as well as boys. They are mostly ignored from childhood. However, when Modiji came to power in 2014, he tried to implement many schemes for girls. Sukanya Samriddhi Yojana (SSY) was developed as part of the government's 'Beti Bachao, Beti Padhao' campaign. It is a welfare scheme designed keeping in mind the needs of a girl child. Investing in this child insurance plan allows parents or legal guardians to ensure financial security for a girl child aged ten years and above. Under the Sukanya Samriddhi Yojana, an account in the name of the girl can be opened across any of the private and public sector banks in India for a period of 21 years.
It is a saving scheme from the Government of India aimed at betterment of girl child across the country. Sukanya Samriddhi Yojana launched to provide a bright future for the girl child and enables parents to build a fund for the future education and marriage expenses of their girl child. Sukanya Samriddhi Yojana, is a deposit scheme made especially for a young girl, and was introduced to ensure a financially secure future for her. It will help you save regularly for your little princess. Through regular deposits, you can create a ‘sufficient corpus as the years pass, and can be used to meet your child’s goals such as education or marriage etc.
It was one of the multiple schemes, that the Government introduced under its ‘Beti Bachao Beti Padhao Yojana’ launched in the year 2015 by the Prime Minister Narendra Modi along with ‘Dhanlakshmi Scheme’, and ‘Ladli Scheme’. If you want to open an account under the Sukanya Samriddhi Yojana Scheme then you can do so by visiting either banks or the post office. The rate of interest that you will receive in the account is 7.6 per cent per annum. This interest rate is applicable from 1st April 2020.
However, if you opened your account between 12th December 2019 and 31st March 2020 then you will still earn 8.4% p.a. The Interest is payable yearly and no interest will be provided if the girl becomes an NRI. You can invest a minimum of Rs 1,000 and up to Rs 1.5 lakhs every year into your daughter's account under the Yojana. These deposits can be made only for the first 15 years after opening the account, after which the funds in the account would grow from the accumulated compound interest. Subsequently, the accumulated amount can help your daughter support her dreams of higher education.
The Government of India has made Sukanya Samriddhi Yojana accessible for everyone, and hence, you can open an account at any post office or bank.
Eligibility
- Only parents or legitimate guardians of the girl child can open a Sukanya Samriddhi account
- .The girl ought to be under 10 years at the time of account opening. The account can be operational till the girl child is 21 years old.
- You can open an account from ₹250 till ₹1,50,000 yearly with ongoing deposits in the products of ₹100.
- An individual child cannot have numerous Sukanya Samridhhi accounts.
- Only two Sukanya Samriddhi Yojana accounts are permitted per family, i.e., one for each of your daughters.
Benefits of Sukanya Samriddhi Yojana
High Interest:
Sukanya Samriddhi Account provides a higher rate of interest than other saving plans for children, that offer financial security for the girl child. Each financial year, the government declares the applicable interest rate for that year, while the interest on your investments is compounded yearly. By maturity, the assets under your Sukanya Samriddhi Yojana account will increase substantially.
Significant Tax Savings:
Your contributions towards the Sukanya Samriddhi Yojana for your daughter's future are eligible for tax deductions under Section 80C of the Income Tax Act 1961. Thus, you can claim tax deductions up to Rs 1.5 lakh invested in the scheme. Moreover, the tax-saving benefits are also available on the interest earned and the amount received upon maturity or withdrawals. The Sukanya Samriddhi Yojana is under the authority of the Department of Revenue (DOR) and is one of the more popular investment schemes that come with the exempt-exempt-exempt (EEE) status.
Guaranteed Maturity Benefits
Upon maturity, your account balance under the Sukanya Samriddhi Yojana, including the accumulated interest, will be paid in full in the account of the policy holder. Thus, the scheme essentially helps your daughter becomes financially independent and empowered once she is mature enough to make life decisions on her own.
Tax Benefits of Sukanya Samriddhi Yojana
If you have an account under SSY then you are eligible to avail tax benefits on deposits,
it is eligible for deductions provided under 80C of the Income Tax Act. You can avail of a deduction of up to Rs 1,50,000. The compound interest that is accumulated in your deposit account is also exempt from tax and the withdrawals are also tax-free. Thus, once your account matures you can withdraw the amount without any tax deduction.
You can see that Sukanya Samriddhi Yojana is an E-E-E instrument. That is, Exempt-Exempt-Exempt.
Withdrawal for Education
You can withdraw for your child’s education, if she reaches the age of 18 years or else completed the 10th standard. For this, you need to submit the appropriate documents related to admission such as
- Confirmed admission offers from the college/university
- Copy of fee slip
The maximum amount that you can withdraw is capped at 50% of the amount available as of the previous year.
What are the conditions for Premature Withdrawal from Sukanya Samriddhi Yojana? There can be circumstances when you cannot continue with the account and thus have to withdraw your corpus before maturity. You can withdraw prematurely if:
- You are allowed to withdraw when the girl is a major and is getting married.You can apply one month before the marriage or 3 months after the marriage declaring the same. However, the proof of identity and marriage must be submitted
- In case, the child dies, the right of the account will be given to you and you can withdraw the balance after submitting the death certificate.
- The account can be closed after 5 years if the girl child is facing difficulties for survival. These can be the death of a guardian, parent, etc. This must be approved by the bank or the post office you have an account in.
The Sukanya Samriddhi Yojana is the right choice for your ‘Sukanya’ or princess.
