Sukanya Samriddhi Account Yojna-An investment with Tax benefit

As the name defined itself , this is account specially designed for Girl child , which not only help parents to save some money for their Girl child even they can save tax on the invested amount U/s 80C .

Features of Sukanya Samriddhi Account

Account under Sukanya Samriddhi can be opened and operated either by the minor girl child who has attained the age of 10 years or by guardian of the girl child. Only one account shall be opened in the name of a girl child under these rules after furnishing birth certificate of the girl child along with other documents relating to identity and residence proof of the depositor.

Guardian of the girl child will be allowed to open and operate accounts of maximum of two girl children except in the case where depositor either blessed with three girl children in first birth or twin girls in the second birth.

Deposit Rules

The account can be opened with a minimum of Rs.1,000. Thereafter any amount in the multiples of Rs.100 may be deposited with a minimum amount of Rs.1,000 and maximum amount of Rs.1,50,000 in a financial year.

Rate of Interest

For the current fiscal year i.e. 2014-15, the deposit will fetch interest at the rate of 9.1% per annum.
The rate of interest will be notified each year by the Government which will be compounded yearly.

Premature Withdrawal

 

Premature withdrawal up to 50% is allowed for the purpose of higher education and marriage only when the account holder girl child attains the age of 18 years.

Term Period

The deposit is to be made till the end of 14 years from the year of opening of account. The maturity of the account is 21 years from the date of opening of account or if the girl gets married before completion of such 21 years.

Tax benefit on the Deposit made

The amount deposited towards Sukanya Samriddhi Account is deductible under section 80C upto Rs.1.5 lakhs. This limit also includes other deductions under section 80C.

Tax benefit on the Interest

There is no special tax benefit on the interest earned on the balance. The Interest earned shall be added in the income of the guardian  and a deduction of Rs.1,500 shall be available.

 

Here is the circular link for the reference

http://www.incometaxindia.gov.in/communications/notification/notification9_2015.pdf

 

For details you can refer “Sukanya Samridhhi Account” vide Notification No.GSR No.863(E), dated 2nd December, 2014.