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Sukanya Samriddhi Yojana (SSY): Tax benefits, Interest rate, Eligibility & Benefits

Sukanya Samriddhi Yojana is a small deposit plan for girl children that was launch under the government’s Beti Bacao Beti Padhao campaign. The Sukanya Samriddhi Yajana scheme currently offers 7.6% for quarter ending March 31, 2022. This scheme offers tax benefits in many ways. It provides an income-tax benefit as per section 80C of Income Tax Act,1961. Additionally, the maturity amount and returns earn are exempt from tax in the

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The Sukanya Samriddhi Yojana account can be open at any time from the girl’s birth until she turns 10. You can open the account at any post office, or in authorize commercial banks branches.

 

What are the requirements for opening a Sukanya Samriddhi account?

In a December 12th, 2019 notification, the government notified the rules for Sukanya Samriddhi Yajana. From her birth until she turns 10, the account can only be open by the natural guardian or legal guardian. Under the scheme, only one account can be open per girl child. The scheme rules allow for maximum two accounts to be open per girl child in a single family.

 

Also read: How to open a Sukanya Samriddhi account with the Post Office

 

At the time that the account is open in the bank or post office, the guardian should submit the birth certificate of the girl to whom it is being open.

 

What amount can you deposit into the account?

An initial deposit of Rs 250 is require to open the account. After that, you can make any amount.

The account can be open up to 15 years after opening. For a 9-year old, deposits must continue until the child turns 24. The account continues to earn interest between the ages of 24 and 30, when the account matures.

 

If a minimum of Rs 250 is not made in one financial year, the account will be declare defaulted. An account that is in default can be restore by paying a minimum of Rs 250 within 15 years.

 

Sukanya Samriddhi account opening documents

These are the documents you will need to open a Sukanya Samriddhi account:

  1. A) Photograph of the applicant
  2. b) Aadhaar number for guardian
  3. c) PAN for guardian
  4. d) Certificate of birth for a girl child
  5. e) KYC documents, i.e. proof of identity and proof address

How is the interest rate calculate for deposits?

At the end of each quarter, the government announces the interest rate for the scheme. The next review of the interest rate will be schedule for March 31, 2022. From April 1 through June 30, 2022, the interest rate will be announce.

 

Interest on deposits you make will be calculate based on the balance in your Sukanya Samriddhi account between the fifth and the end of each month. To get a higher interest rate, the depositor must ensure that the account has been credit by the 5th of each month. The account shall receive the interest at the end of each financial year.

 

What is the operation of the account?

The account will be operate by the guardian until the girl child reaches 18 years, as per the notifies scheme rules. The account will be manage by the girl child after the 18th birthday. KYC documentation must be submits.

Premature closure of Sukanya Samriddhi Account

The account will be close upon the death of the account holder. A death certificate issue by the competent authority will also be produced. In addition to the interest due until date of death, the account balance will be paid to the account holder’s guardian.

Tax break: Investments in SSY accounts are qualifies for tax cuts under Section 80C of the Income Tax Act, 1961. The premium aggregated will likewise be exclude from tax assessment, alongside the sum got on the development of the record.

Please Read : Which One Is a Better Option for a Daughter, Sukanya Samriddhi Yojana or Equity Mutual Funds?

Value Mutual Funds: Equity common assets put resources into the portions of various organizations. The asset administrator attempts to offer great returns by spreading venture across organizations from various areas or with differing market capitalizations. Value reserves are known to create better returns in long haul contrasted with term stores, little investment funds plans or obligation based reserves. Nonetheless, there is a measure of hazard related with these assets since their exhibition relies upon different economic situations

 

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