Sukanya Samriddhi Yojna: One of the best things you can do to help your kids save money for the future is to put money into small savings plans. A Small Savings Scheme supported by the government is the Sukanya Samriddhi Account.
Eligibility and Account Opening
A girl child may open a Sukanya Samriddhi Account in her name up until the age of ten. Post offices and designated commercial bank branches are places where accounts can be opened. The Sukanya Samriddhi Account has an annual interest rate of 8%, which is computed annually and compounded annually. A minimum of Rs 250 and a maximum of Rs 1,50,000 can be used to open an account during a fiscal year. Deposit made again in multiples of Rs 50. One option for deposits is a lump sum. No cap on the quantity of deposits made in a given month or fiscal year.
Documents Needed
- SSY Account opening form
- Birth certificate of the girl child
- Address proof of the guardian or parents of the girl child
- ID proof of the guardian or parents of the girl child
Tax Benefits for Subscribers
Subscribers to the Sukanya Samriddhi Account receive significant tax benefits. Section 80C of the IT Act allows for tax deductions on investments made into Sukanya Samriddhi Accounts. A deduction on the Sukanya Samriddhi Account is permitted each year up to a maximum of Rs 1.5 lakh. Under Section 10 of the Income Tax Act, the interest that accumulates and is compounded annually on this account is also tax-free. Upon maturity or withdrawal, the proceeds are likewise free from income tax.
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