One of the highest tax-free return
investments, backed by the Indian Government is the Sukanya Samriddhi Yojana. It
comes with an EEE tax status. It means, taxes get exempted when you make
deposits earn interests, and the amount matures. You can claim these under
Section 80C of the Income Tax Act, 1961. You easily apply for the account at a
post office or bank.
While these features are
attractive, you also need to check implications it will have on your financial motives
and the economic needs of the girl child, unlike other investment instruments. Sukanya Samriddhi Account focuses on the secure future of the girl child.
The basics of the
scheme are –
One can open the SSY account for the girl
child only between zero to 10 years old.
Under each girl child name, you can open
only one account.
Only SSY accounts are applicable for two
girl children per family.
The girl child gets access to the SSY
account once she crosses 10 years of age. Later, the child, as well as the
parents, can contribute to the account.
The minimum deposit amount is INR 250, and
the maximum limit is INR 1.5 lakh.
Before you invest in the Sukanya Samriddhi
scheme, here is what you need to consider –
Make sure to invest in the account before
10th of every month. This way you earn interest for the month’s deposit.
You can prematurely close the account only
after successfully running the account for five years from the date of opening
SSY. Further, you can close the account only in rare cases such as medical
treatment for life-threatening diseases.
If the premature closure is for some other
reason, the deposit will earn interest as that the ones received through post
office savings account.
You need to deposit for a minimum 15 years for
keeping the account active. There are strict partial and full withdrawal rules
in place. So, consider it as a long-term investment and give your full
commitment to the same.
The account tenure is 21 years,
irrespective of the girl child’s age.
Considering the minimum investment period
is 15 years, the age of the child is crucial. For instance, say you opened the
account when the child was 9 years old, the deposits must be maintained until
she turns 24 years old. The account continues to incur interest until she turns
30 years. This does not make the account useful if the purpose of the
investment was the girl child’s education.
The age of the child is essential for
premature withdrawals. So, when the girl turns 18 years, you can withdraw a maximum
50 per cent of the amount from the preceding year for the objective of
education. You may need to admission proof from the educational institute. Moreover,
the withdrawal limit gets restricted to the fee amount mentioned in the
institution slip.
Premature withdrawal is possible for the
girl’s marriage as well if the parents provide a written letter that she is not
below 18 years old on the date of the wedding.
The Sukanya Samriddhi Account has stringent
withdrawal and deposit rules in place making sure no one misuses the account. This
way the girl child can lead a happy and secure life.
