Prime Minister Narendra Modi's government has introduced several schemes for the development of women and girl child in the country.
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One of the very popular tax-saving schemes is Sukanya Samriddhi Yojana, meant to encourage savings that will eventually be used to fund the education and marriage of the girl child.
Here are some of the key features of Sukanya Samriddhi Account (SSA) and how you can open it:
A maximum of two Sukanya Samriddhi Accounts can be opened for a girl child either by her parents or legal guardians. In the case of twins, a total of three accounts can be opened.
The government has kept the rate of interest for this scheme at 8.5 percent per annum, making it lucrative enough for parents and guardians to pour in more money for the security of their girl child. The interest rate is compounded yearly.
However, this rate of interest is not permanent and would keep changing every fiscal year based on economic factors.
Parents and guardians of the girl child can deposit a minimum of Rs 1,000 per annum, going up as much as to Rs 1,50,000 per annum in the Sukanya account. Deposits can be made through cash, cheque, and demand drafts.
All deposits made in the Sukanya account are tax exempted under Section 80C of the Income-Tax Act, 1961.
In case the Sukanya account is closed for any reason whatsoever, the account can be revived by paying an additional amount of Rs 50. This amount has to be paid towards the end of the year in addition to the minimum amount for that year. The Sukanya account can be prematurely closed in the event of the death of the depositor.
Once the girl child attains the age of 18 years, she can withdraw up to 50 percent of the funds deposited for her in the Sukanya account. She can, however, operate the account after 10 years of its opening.
The account will mature in 21 years from the date on which the account was created, or on the date of marriage of the girl child in whose name the account was created. All the accrued interest will be paid to the account holder, that is, the girl child on maturity.
The Sukanya accounts are transferrable anywhere in India and the scheme is a lucrative way for parents to save for the education and marriage of the girl child.
