How you can Save for your Girl Child Future with help of Sukanya Samridhi Scheme and get Tax Benefits?

How you can Save for your Girl Child Future with help of Sukanya Samridhi Scheme and get Tax Benefits?

Sukanya Samridhi scheme was launched by Government of India on 22nd January 2015 as a part of Beti Bachao Beti Padhao campaign. The scheme mainly targets parents having girl child to encourage them to invest for the future education and marriage expenses of the girl child. Under this scheme the parent having girl child has to apply for the scheme in the nearby post office or authorized banks.

The applicant can apply for the scheme between the birth of girl child but up to attainment of 10 years of age. Only one account per child is allowed per child except in case of twins or triplets. The applicant can start with initial investment of Rs. 250 and invest up to a maximum of Rs. 1,50,000 annually with further deposits in the multiples of Rs. 100. In this article we will be learning about the various aspects of Sukanya Samridhi Scheme.

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Features of Sukanya Samridhi Scheme:

The various features of Sukanya Samridhi Scheme are as follows:

1. Age limit: The applicant can apply for the scheme between the birth of girl child but up to attainment of 10 years of age.
2. Interest rates: The government fixes interest rates on the scheme on quarterly basis depending on the government security yield. The scheme currently enjoys an interest rate of 7.6 % p.a. Interest is compounded yearly and will be credited to the account of the applicant. In case the account holder opts for monthly interest, the same will be calculated on the balance in the account on completed thousands, in the balance which will be paid to the account holder and the remaining amount in fraction of thousand will continue to earn interest at the prevailing rate. For monthly interest, only the amount in thousands will be considered, the balance will continue earning interest at prevailing rate. The interest will be calculated for the calendar month on the lowest balance in an account on the deposits made between the close of the 10th day and the end of the month.
3. Interest rate fluctuation: As the interest rate is decided by the government, the rate of interest is subject to periodic changes in the case of Sukanya Samriddhi Scheme, the rate of interest changes in each quarter.
4. Tax benefits: The scheme is eligible for deduction under section 80C of the Income tax act 1961. The person can claim a maximum deduction of Rs. 1.5 lakh in the previous year on investment made in the scheme. The Interest earned under the scheme is exempt.
5. Only for resident girl child: A girl child is eligible for an opening account under this scheme only if she is a resident Indian citizen at the time of opening the account, and remains so until the maturity or the closure of account. Non-resident Indians cannot open any account. Even, if you or your child’s residential status changes to non-resident or she takes up another country’s citizenship during the term of the scheme, no interest shall be paid from the date of citizenship or residential status changes and the account will be considered close.
6. Transferable: The Account can be transferred anywhere in India and from one post office to other post offices and from one bank to other Banks and between post office and Bank, free of cost on furnishing of proof of shifting of residence of either the parent/ guardian or the Account holder and otherwise, on payment of a fees of one hundred rupees to the post office or the Bank to which the transfer is made.
7. Mode and period of deposit: The deposit can be made in cash or cheque or any other mode including electronic transfer in the concerned post office or banks in case of availability of core banking solutions. The account holder has to make deposit in the account till the completion of 15 years from the date of opening of account.
8. Premature withdrawal and Maturity period: A girl child can withdraw 50% of the amount once she reached 18 years of age. The account stands matured once the girl attains 21 years of age. Normal Premature closure will be allowed after completion of 18 years on the occasion of marriage.
9. How to open Sukanya Samridhi Scheme Account: Sukanya Samridhi Scheme account can be opened at any near by post office or authorized banks along with following documents and details:
   1. Duly filled account opening form
   2. Birth Certificate of the girl child
   3. Applicant/ Depositor ID proof and valid address proof.
   4. Medical certificate in the case of twins or triplets
   5. Additional documents if any

Authorized banks for the scheme: Apart from Post office RBI has authorized the below banks under this scheme:

1. Axis Bank
2. Andhra Bank
3. Allahabad Bank
4. State Bank of India
5. Bank of Maharashtra
6. Bank of India
7. Bank of Baroda
8. Vijaya Bank
9. State Bank of Hyderabad 
10. Indian Overseas Bank 
11. Indian Bank
12. IDBI Bank
13. ICICI Bank
14. United Bank of India
15. Union Bank of India
16. UCO Bank
17. Punjab National Bank
18. Syndicate Bank
19. Punjab & Sind Bank 
20. Oriental Bank of Commerce 
21. Dena Bank
22. Corporation Bank
23. Canara Bank
24. Central Bank of India

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