Sukanya Samriddhi Yojana is a govt scheme for the girl Child however very few people know that sukanya samriddhi account can be opened in post office as well. We discus about Post office Sukanya Samriddhi Yojana Scheme Details, how to open an account and tax benefits in this blog.
Gender discrimination is one of the grave problems we all face in India. In India where education of male child is given priority and where wedding expense of girls is seen as a great obligation. Thus to bring in parity between girl and boy financial stability, Indian Government has launched “Beti Bachao Beti Padhao” programme to ensure girl child birth future. The main reason for launching this project under government scheme was to encourage families to save for their girl child and provide child with financial security and financial independence. During Budget of 2015, government has announced the initiation of SSY scheme which has proved to be a massive step towards safeguarding girl child and supporting “Beti Bachao Beti Padhao” programme.
Who can open SSY scheme
Every resident Indian who has a girl child can opt for opening SSY account. The SSY account can be opened any time before the girl child reaches the age of 10 years.
Note: At the time when this scheme was first introduced, one year grace period (in case of age determination) was given for every girl child who is born between 2.12.2003 & 1.12.2004.
SSY account can be opened and maintained by parents or legal guardians of a girl child on behalf of the girl child.
Note: Only one account can be opened in the name of one girl child (One girl child = One SSY account)
How to open SSY scheme account
SSY account is very much similar to saving deposit account. In case an individual is interested to open SSY account, one must submit the requisite documents in the post office. The documents required to be submitted for opening an SSY account are:
- Sukanya Samriddhi Account Opening Form
Note: The account opening application form is available in downloadable form online on all post office websites. Also the hard copy of the form is available at all post offices, one can any time collect and fill and submit the same.
- Birth Certificate of girl child
- Identity Proof of depositor (i.e. Parent or legal guardian): PAN card, Ration card, Driving License, Passport
- Address Proof of depositor (i.e. Parent or legal guardian): Passport, Ration Card, Electricity Bill, Telephone Bill, Driving License
How much amount can be contributed ?
The initial deposit amount required to be made to open a SSY account is Rs.1000. Any subsequent contribution can be made in multiples of Rs.100. Minimum contribution to be made each contribution is Rs.100 whereas there is no maximum limit for making such contribution. Also a SSY account holder can make contribution any number of times in an year.
Interest Rate (Rate of Return)
The rate of interest earned on SSY scheme is decided by the government. On general basis the rate of interest is provided each year by 1st April. The new rate each year is decided by government based on market fluctuation and government policy.
Rate of Interest
Maturity or Closure (Lock-In period) of SSY account
The SSY can be closed and all accumulated amount can be withdrawn only when the girl child attains the age of 21 years.
Whereas partial withdrawal is allowable only if the account has been active (simple means contribution was made regularly) for at least 14 years and also the girl child has attained the age of 18 years. An amount equal to 50% of the total accumulated deposit amount can only be partially withdrawn. This partial withdrawal is allowed only in cases where the money is required for higher education of the girl child or to pay off marriage expense of the girl child or in case of serious medical reasons.
The SSY account holder would be allowed to prematurely close the SSY account only if:
- Death of the girl child who is the account holder.
- The central government is of the opinion that the parent or guardian is enable to make any further contribution. (Note: The central government may provide this exemption only in cases where the guardian or the parent of the account holder on medical ground or financial status).
In case of major liquidity crunches the parent or legal guardian as the case may be can also pledge the SSY scheme account and obtain Loan against the accumulated deposit.
Income Tax Benefit
Any contribution made under the SSY scheme, an individual (parent or legal guardian who is making such contribution under SSY scheme) can claim tax benefit and deduction up to a limit of Rs.1.5 Lakh in a year under the section 80C of Income tax act. Any amount over and above Rs.1.5 lakh is not eligible for any tax benefit.
Transfer of SSY account
Transfer from one post office to another
In cases where the SSY account depositor (Parent or legal guardian) is moving from one place to another and the holder won’t be able to manage the SSY investment due to location constraint. Then the post office under which he or she has first opened the account can allow the inter location post office transfer of the SSY account.
The investor (depositor) needs to provide transfer application at either the old or new post office requesting for the transfer.
The SSY scheme provides not only provides a good opportunity for the girl child to be financial independent when she reaches majority (i.e. 18 years plus) but also provides tax benefit to the depositor. Thus government preposition has been a fruitful campaign for all girl child.