Another welcome move from Govt of India is
the Sukanya Samriddhi Account. Honourable India's Prime Minister, Narendra Modi
unveiled the "A Small Savings Scheme" Sukanya
Samriddhi Yojana on January 22, 2015.
It
is part of the Government of India's (GOI) initiative "Beti Bachao – Beti
Padhao" also known as the BBB. Despite sincere efforts by Govt of India,
India's sex ratio remains a serious concern and shows the country's
backwardness. It is commendable that India's Govt is taking steps to change
people's attitudes toward Girl Child.
Let us understand the benefits of Sukanya
Samriddhi Yojana
Offers highest interest rate in the
small savings scheme initiated by Government of India
In the small savings scheme, it offers the
highest rate of interest. The interest rate for this scheme is related to the
market. The financial year's interest rate will be determined by the Govt of
India each year. On a monthly basis, it will be accrued on the lowest balance
between the 5th and last day of the month.
Tax savings
Govt has exempted contributions to this
account u / s 80C of the Income Tax Act, 1961 to encourage people to open
Sukanya Samriddhi Account. This scheme is likely to be EEE, i.e. exemption will
also be eligible for interest income and withdrawal at the time. It is being
considered by the Revenue Department (DOR). A legislative amendment to this
effect will soon be introduced by DOR. It will be a program that is most tax-efficient.
Lock-in period
The account maturity is 21 years from the
opening date of the girl's child's account or marriage, whichever is earlier. At
the time of marriage, the girl should be 18 years old. One premature withdrawal
is permitted by a girl child on reaching the age of 18 only when funds are
needed for higher education. Premature withdrawal at the end of the preceding financial
year is limited to 50 per cent of the balance. The account deposits can be made
until 14 years from the account opening date through maturity is 21 years from
the account opening date.
Purpose of Sukanya Samriddhi account
When Sukanya Samriddhi Account matures, the
account balance together with accumulated interest, will be paid wholly to the girl
child. It gives financial freedom to Girl child which is presently missing in
India. It is not similar to PPF account as
here the purpose is savings for a girl child, whereas PPF is for tax saving
purpose.
Interest to be paid even after maturity
A unique feature of Sukanya Samriddhi Yojana
is that, even after maturity, if the account is not closed by the account
holder, interest is payable in the account until the account is finally closed.
Important points to remember
For NRIs, this scheme is not available
because it is a small savings scheme.
Under this program, from the account
opening date, you will make a deposit for 14 years. After 21 years, the account
will only mature.
After opening the account, it is not
possible to change the guardian. It is permitted only under special circumstances
such as an existing guardian's death.
