Indialends, 05 May 2021

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Sukanya Samaridhi Yojana

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The Sukanya Samaridhi Yojana scheme is started for the betterment of the girl child. This scheme aims to promote the means of saving the girl child's future in each of the family. The tenure of Sukanya Samaridhi Yojana is 21 years from the date account has been opened or if the girl gets married after completing the age of 18 years.

Main features of Sukanya Samaridhi Scheme

Interest rate:  The interest rate that applies to this scheme is 7.6%. It changes each year

Account operation: The guardian or parents can operate the account until the girl reaches the age of 10 years. The girl must operate the account once she attains the age of 18 years.

Investment amount:  Minimum amount invested is Rs 250 and the maximum is 1.5 Lakh in a year.

Maturity amount: Based on the amount invested by a person

Maturity period: Deposits towards the scheme should be made for 15 years. However, the scheme matures after 21 years.

Account Transfer process: One can easily transfer the SSY account from post offices to banks and vice versa anywhere within India. There are no charges levied by the government to transfer the account. However, proof for change in residence must be produced. In case no proof is produced, an Rs.100 charge will be levied.

This scheme was launched by Prime Minister Narendra Modi under the campaign Beti Bachao Beti Padhao to save the future of girl child.  You can use the investment done in Sukanya Samaridhi Yojana for your daughter’s higher education or her marriage. One can open an SSY account in banks or post offices at its convenience. According to Section 80C of the Income Tax Act, 1961, one can get a tax benefit of Rs 1.5 Lakh for the contribution made toward this scheme.

What happens when a lesser or excess amount is paid towards the Sukanya Samaridhi Yojana scheme?

Lesser amount: In case the minimum amount of 500 is not deposited in the financial year, it is considered as a default account. In that case, to make the account active again, one is required to pay the fine of Rs 50.

Excess amount: When you are investing more than 1.5 Lakh, in that case, no interest is given on the deposited amount.

What are the withdrawal rules of Sukanya Samaridhi Yojana?

Once the duration of the account is completed, the entire amount available at present with interest can be withdrawn by the girl child. One is required to submit the below-mentioned list of documents:

Application form for the withdrawal of the amount.

• ID proof
• Address proof
• Citizenship documents

The reasons for which withdrawal is allowed are higher education of girl child or if the girl child has attained the age of 18 years and has completed 10th standard. However, the money must be used for the fee or any other charges that are levied at the time of admission.

Documents such as admission to the university or college as well as the fee receipt must be submitted when applying for the withdrawal.

The maximum amount that can be withdrawn is 50% of the amount that is available in the previous year. The amount can be withdrawn in 5 installments or a lump sum.

What are the rules for premature withdrawal of an SSY account?

• When the girl becomes 18 years old or getting married, then only SSY premature withdrawal is allowed. At that time, an application is required to be submitted one month before the marriage and 3 months after the marriage to avail of the benefit of the SSY account. Along with the application, the girl is required to give income proof also.
• In case the girl becomes a non-resident or non-citizen, the account will be deemed as closed. Any such change in SSY status must be informed by the girl or guardian within one month from the date change in status has taken place.
• In case, the girl child dies, then the balance amount available in the account is allowed to be withdrawn by the guardian. However, the death certificate must be submitted.
• If the account has been opened for 5 years and more, and the bank or post office feels that the continuation of the account is creating difficulties for the girl child, the guardian of a girl child can choose pre-mature closure.
• Permission to close the account will be permitted for other reasons as well, but the interest that is earned from the contributions will be the same as the interest rates that are provided by post offices.

Know about the tax benefits on Sukanya Samaridhi Yojana

• According to Section 80C of the Income Tax Act, 1961, tax benefits up to the limit of 1.5 Lakh are provided for the contribution made towards the SSY scheme.
• The interest amount generated is also exempted from tax.
• Tax benefits are also provided for the maturity amount or the withdrawal amount.

What are the eligibility criteria for opening an SSY account?

• The parent or legal guardian must be a citizen of India. They are allowed to open the account of a girl child until she reaches the age of 10.
• In a family, up to two accounts can be opened for two girls
• The girl must resident of India
• A third SSY account can be opened in the case of twin girls

What are the documents required to open an SSY account?

• SSY account opening form.
• The birth certificate of the girl's child to be submitted at the time of opening the account.
• The ID proof and address proof of the depositor to be submitted at the time of opening the account.
• A medical certificate submission in case multiple children were born under one order of birth.
• Any other documents that are requested by the bank or post office.

The below-mentioned banks offer SSY scheme:

• State Bank of India
  
• United Bank of India
• UCO Bank
• Punjab National Bank
• Oriental Bank of Commerce
• Indian Bank
• ICICI Bank
• Corporation Bank
• Canara Bank
• Bank of India
• Axis Bank
• Allahabad Bank
• Vijaya Bank
• Union Bank of India
• Syndicate Bank
• Punjab & Sind Bank
• Indian Overseas Bank
• IDBI Bank
• Dena Bank
• Central Bank of India
• Bank of Maharashtra
• Bank of Baroda
• Andhra Bank