Updated December 30th, 2023 at 16:34 IST
What is Sukanya Samridhi Yojana? Check out all the benefits of this scheme
Sukanya Samriddhi Yojana launched in 2015 as part of the Beti Bachao Beti Padhao initiative by prime minister. Here are the glimpse of benefits of this scheme
Launched in 2015 as part of the Beti Bachao Beti Padhao initiative, the Sukanya Samriddhi Yojana (SSY) is a unique savings scheme designed exclusively for the welfare of the girl child in India. This government-backed initiative aims to encourage parents to save for the future education and marriage expenses of their daughters while fostering financial inclusion and empowerment.
There are so many benefits of Sukanya Samriddhi Yojana:
1. High Interest:
Sukanya Samriddhi Account provides a higher rate of interest than other saving plans that offer financial security for the girl child. Each financial year, the government decides how much interest you get on your money in your Sukanya Samriddhi Yojana account. This interest increases each year, making your savings grow a lot by the time they mature.
2. Significant Tax Savings:
Your contributions towards the Sukanya Samriddhi Yojana for your daughter's future are eligible for tax deductions under Section 80C of the Income Tax Act 1961. The Sukanya Samriddhi Yojana is under the authority of the Department of Revenue (DOR) and is one of the more popular investment schemes that come with the exempt-exempt-exempt (EEE) status.
3. Helps save for your girl child’s educational expenses:
If you are a parent or a guardian of the girl aged less than 10 years, you are eligible to open a SSY Account for no more than two daughters. Here’s the big bonus. After the girl turns 18, 50 per cent of the balance can be withdrawn to meet educational expenses. Proof of admission must be provided.
4. Tax Benefits of Sukanya Samriddhi Yojana:
- If you have an account under SSY then you are eligible to avail yourself of tax benefits on deposits. Let's take a look at the tax benefits provided by Sukanya Samriddhi Yojana.
- Since an SSY account is a type of investment, it is eligible for deductions provided u/s 80C of the Income Tax Act. You can avail of a deduction of up to Rs 1,50,000.
- The compound interest that is accumulated in your deposit account is also exempt from tax.
- The withdrawals are also tax-free. Thus, once your account matures you can withdraw the amount without deduction
Published December 30th, 2023 at 16:34 IST