BJP government at center for girl children has stirred up the whole nation. As a part of Beti Bachao Beti Padhao campaign, the Sukanya Samriddhi Yojana is gaining popularity like wild fire. In this article we will first calculate the maturity amount on yearly and telangana budget 2017 18 pdf investment and then will give you in depth details about this scheme.
Without further ado, let us start with the Sukanya Samriddhi Yojana FAQ. We will try to keep things as simple as possible and explain everything in layman terms. The SSY is designed only and only for girl children of India. The target audience is the deprived female children who are usually forced to quit studies or are forced to marry at an early age. Male children are kept out of the scope of this scheme because they are usually not the deprived ones in Indian culture.
The table below sums up the age related criteria associated with this scheme. 10 years of age at the time of opening the account. This is a very tricky question. 3 accounts for the triplet sisters from first birth. If triplets are born in second birth, one daughter has to be left out. Thus essentially, the maximum number of accounts can never exceed 3, irrespective of the number of girl children in the family.
Under this scheme, an account can be opened only and only by biological parents of the girl child or by a legally assigned guardian of the child in case the parents are not alive. A girl child herself cannot open an account. Account operation can be handled by parents or legal guardians on behalf of the girl child as long as they want. However, when the female child turns 18 years old, she gets the right to operate the account on her own and no intervention will be required from her parents or legal guardian unless she wants them to intervene. Please note that the minimum yearly deposit cannot fall below INR 1000 per account.
This amount can be deposited in installments with minimum deposit per installment being INR 100, which means a maximum of 10 installments are allowed per account. The maximum amount that can be deposited in an account in any given financial year is INR 150,000. As with the minimum yearly deposit allowed, the maximum yearly deposit can also be deposited anytime during the year in installments with installment amounts best suiting the financial health of the depositor. The minimum installment limit still remains at INR 100. Yes, it is possible to earn interest.
Any deposit in Sukanya Samriddhi Account is eligible for interest earnings. The yearly interest that will be paid is flexible or floating. This means that the interest rate may change every quarter. When the scheme started, the interest rate for fiscal year 2014-2015 was 9.
For the fiscal year 2015-2016, interest rate of 9. Let us take a tabular look into the tax benefits that can be expected from investing in this scheme. Interest earnings are totally tax-free in the hands of the parents or guardians. This means that 80C exemptions will be applicable for investments in Sukanya Samriddhi scheme till the maximum limit assigned for 80C. If the investments in this scheme exceed the total allowed exemption limit, the excess amount will be taxed.
Example: You have an FD of INR 80,000 and you invest INR 100,000 in Sukanya Samriddhi Scheme, the total investment amount becomes INR 180,000. This is greater than the maximum exemption limit of INR 150,000 defined by 80C. Since FD was made first, it will continue to enjoy full exemption but the investments in Sukanya Samriddhi Scheme will fall under taxation. An account under this scheme will mature after 21 years from the date on which the account was initially opened. For how long do you need to keep investing ? This account will remain active for 21 years from the date on which the account has been opened.
Similarly, if the age of the girl was 10 years on the date of participation, the account will stay active until the girl reaches the age of 31 years. However, one can has to keep investing for 14 years at least. Is it possible to withdraw money before the account matures? The scheme has provisions for premature withdrawal. However, there are some strict restrictions applied.