Introduction to Sukanya Samriddhi Yojana:
The Government of India began a social effort on January 22, 2015, to address the issue of the dropping child sex ratio in our nation. The Beti Bachao Beti Padhao (BBBP) movement promotes the idea that females should be educated and saved. Sukanya Samriddhi Yojana (SSY) attempts to address education and marriage, two significant issues affecting girl children.The Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Human Resource Development are jointly in charge of this national effort.
The BBBP seeks to accomplish the following:
End the practise of sex determination and gender discrimination against minors.
Guarantee the girls’ survival and protection.
Make sure that more girls participate in education and other activities.
By assisting the parents of a girl child in creating a fund for their kid’s good education and worry-free marriage expenditures, it aims to secure a bright future for girl children in India.
Sukanya Samriddhi Yojana account and maturity period:
Setting up an SSY account
There can be only one SSY account per girl child. Any authorised commercial bank branch or post office can open SSY accounts.
Maturity period of SSY
The maturity period of SSY is 21 years from the account opening or upon her marriage after attaining 18 years. However, contributions have to be there for 15 years. Thereafter, the SSY account will continue to earn interest until maturity even when no deposits are made into it.
Some more details:
Beneficiary of SSY
Any girl child who resides in India is a beneficiary under the SSY.
Deposits under SSY
Until the girl child turns 18 years old, the guardian may deposit money and manage the account. After turning 18 years old, the girl child will have to handle the SSY account by law. The minimum deposit amount for an SSY account is Rs. 250 (formerly Rs. 1,000), with subsequent deposits in multiples of Rs. 50, and the maximum deposit amount is Rs. 1,50,000 every fiscal year for a period of up to 15 years. Cash, checks, demand draughts, and online transfers are all acceptable forms of deposit.
Interest on deposits
For the first quarter of FY 2023-2024, which runs from 1 April 2023 to 31 June 2023, the interest rate is 8% p.a.
No interest is payable after the completion of tenure of the SSY, i.e after 21 years from account opening. No interest accrues after the girl child becomes a non-citizen or a non-resident of India. Any deposit placed in excess of the annual maximum cap, which is Rs. 1,50,000, will not earn interest and may be withdrawn at any time by the depositor.
Benefits of Sukanya Samriddhi Yojana
Affordable Payments:
A Rs. 250 minimum deposit is needed each fiscal year to maintain an SSY account. Up to Rs. 1.5 lakh can be deposited at your convenience per fiscal year. Everyone in the society appears to be able to make the payments.
Educational Expenses covered: You may withdraw 50% of the account balance as of the end of the preceding financial year to cover your girl child’s schooling costs. This can be obtained by providing admissions documentation.
Attractive Interest Rates: In comparison to other government-backed programmes, the interest rate that applies to SSY accounts has always been high. The rate is currently 8% every year.
Returns Are Guaranteed: Since SSY is a government-backed programme, returns are assured when it matures.
Convenient Transfer: The SSY account can be moved effortlessly from any Indian post office to any Indian bank, and vice versa.
Tax Benefits on Sukanya Samriddhi Yojna:
Section 80C allows for deductions for investments made in the SSY plan, up to a maximum of Rs 1.5 lakh.
According to Section 10 of the Income Tax Act, the interest that is accrued on this account and is compounded annually is also not subject to taxation.
Taxes are not applied to the proceeds that are received upon maturity or withdrawal.
Sukanya Samriddhi Yojana interest rate 2023
The interest rate has increased to 8% for the first quarter of FY 2023-2024, or from 1 April 2023 to 31 June 2023.
The interest rate for the fourth quarter of the fiscal year 2022–2023—that is, from 1 January 2023 to 31 March 2023—was 7.6%.
For the first quarter of FY 2022–2023, from 1 April 2022 to 30 June 2022, the interest rate was 7.6%.
SSY vs PPF:
| Parameters | Public Provident Fund (PPF) | Sukanya Samriddhi Yojana (SSY) |
| Minimum Deposit per Financial Year | Rs.500 | Rs.250 |
| Maximum Deposit per Financial Year | Rs.1.5 lakh | Rs.1.5 lakh |
| Eligibility Criteria | Any single adult who is a resident Indian | Girl child below the age of 10 years |
| Maturity Period | 15 Years | 21 Years |
| Payment Period | 15 Years | 15 Years |
| Interest Rate | 7.1% p.a. (Q1 of FY 2023-24); Compounded yearly | 8% p.a. (Q1 of FY 2023-24); Compounded yearly |
| Tax Benefits | EEE Benefit | EEE Benefit |
| Premature Withdrawal | 5 years completion | Upon the girl child attaining 18 years for marriage or higher education |
The Sukanya Samriddhi Scheme is a programme specifically designed to empower girls and ensure their futures. This programme should be looked into by every parent because it also serves as an excellent tax-saving tool.
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