As India continues to get haunted with the growing death rate of infant girls, the Government of India has come up with an initiative to create a sustainable savings program where the parent/ guardian of a girl can accumulate sufficient money to nurture the girls during their puberty. The initiative of this scheme was taken the Prime Minister of India, Narendra Modi under the slogan of Beti Bachao – Beti Padhao. We will talk here all about Sukanya Samriddhi Account Scheme like who can open, where to open, how to open, interest, maturity, withdrawal and tax benefits.
Who can open a Sukanya Samriddhi Account?
The purpose of Sukanya Samriddhi Account is to reduce the concern of a girl’s parent/ guardian. Therefore, the account can be opened by any person who is either the parent or guardian of the girl. It should be noted that the account would be opened in a girl’s name and a person can open a maximum of two accounts. To simplify, under this scheme a person would be able to open two separate accounts for his two daughters. NOTE: The account name will be same as the name of the Girl and her age should be in between 1 month to 10 years.
Where to open & How to open Sukanya Samriddhi Account?
The facility to open a Sukanya Samriddhi Account is available under a list of banks who have been authorized by the Reserve Bank of India (RBI). The list includes name of the 28 banks including units of State Bank Group, ICICI Bank, Axis Banks and other public sector banks.
Any interested person can avail the benefit of this saving scheme by visiting any of the above mentioned banks and asking for a form and submitting the same with the required documents. The necessity includes:
- Birth certificate of the girl
- ID proof of the parents or the guardian who wishes to open the account on behalf of the girl
- Address proof of the parents or the guardian who wishes to open the account on behalf of the girl
- Recent passport size photograph of the girl as well as the parent/ guardian.
Sukanya Samriddhi Scheme Deposits & Interest
The account accepts a minimum deposit of INR 1, 000 and a maximum of INR 1, 50, 000 on an annual basis. Additionally, the deposits can be made in multiple of 100, but the minimum amount of deposit will remain INR 1, 000. If the depositor fails to deposit a minimum of INR 1, 000 during a financial year, then his account will be discontinued and will attract a penalty of INR 50 each year.
Deposits will be entitled to receive an annual interest of 9.25% on an annual basis.
Sukanya Samriddhi Scheme Withdrawals & Maturity
A depositor can withdraw the whole amount (deposits + interest) when the girl reaches the age of 21. There are also provisions for pre-mature withdrawal, the same will be offered under the following situation:
- when the girl gets married, or
- when the girl reaches the age of 18.
Investors can also opt for an option to continue with their deposit scheme. Under such scheme, after the maturity period has been attained, the sum would continue to get interest.
Sukanya Samriddhi Tax Benefits
Investors who have taken advantage of this deposit scheme will be offered a deduction of INR 1, 50, 000 under Section 80C. The computation will also include deductions made under different provisions of Section 80C. The scheme has EEE tax status.