Sukanya Samriddhi Account / Yojana – Highest fetching interest scheme across all schemes.
Disclaimer :- The information is compiled by Akula.Praveen
Kumar, Marketing Executive, Medak HO, AP Circle. Author of blog does not
accepts any responsibility in relation to the accuracy, completeness,
usefullness or otherwise of the contents.
Sukanya Samriddhi Account/Yojana is a Small Savings Special deposit
Scheme for girl child. This scheme is specially designed for girl’s
higher education or marriage needs.
Highest fetching interest scheme across all schemes.
The Scheme launched for the welfare of the girl child, to save and educate the girl child.
Features of Sukanya Samriddhi Account (SSA):
- Who can open the account? – Sukanya Samriddhi a/c (or Khata) can be opened on a girl child’s name by her natural (biological) parents or legal guardian.
- What is the Age limit? – SSA can be opened in the
name of a girl child from the birth of the girl child till she attains
the age of 10 years. ( As per SB Order No. 2/2015 : The Girl child who
is born on or after 02.12.2003 can open account )
- How many accounts can be opened? – A depositor may
open and operate only one account in the name of same girl child under
this scheme. The depositor (or) guardian can open only two SSA accounts.
There is one exception to this rule. The natural or legal guardian can
open two or three accounts if twin girls are born as second birth or
triplets are born in the first birth itself.
- How to open a SSA account? Accounts in name of the
girl child can be opened in post offices or in any branch of a
commercial bank that is authorized by the Central Government to open an
account under this scheme rules.
- What is the minimum deposit to open the account? –
The account may be opened with an initial deposit of one thousand
rupees. The minimum contribution in any financial year is Rs 1000.
Thereafter the contributions can in multiples of one hundred rupees.
- What is the maximum deposit amount? – a minimum of
one thousand rupees shall be deposited in a financial year but the total
money deposited in an account on a single occasion or on multiple
occasions shall not exceed Rs 1.5 Lakh in a financial year.
- Deposits in an account may be made till the child completes fourteen years, from the date of opening of the account.
- Is there any penalty? – If minimum (Rs 1000 pa)
amount is not deposited, the account will be treated as an irregular
account. This can be regularized/renewed on payment of Rs 50 per year as
penalty. Along with this, the minimum specified subscription for the
year (s) of default should be paid.
- What is the mode of deposit? – The deposits in
Sukanya Samruddhi scheme can be made in the form of Cash or Demand Draft
or Cheque. Where deposit is made by cheque or demand draft, the date of
encashment of the cheque or demand draft shall be the date of credit to
the account. The cheque or DD should be drawn in favour of the
postmaster of the concerned post office or the Manager of the concerned
bank.The depositor (parents or guardian) has to write the account
holder’s name (child’s name) and the account number on the backside of
the instrument.
- What is the Rate of Interest on Sukanya Samriddhi Account?
– The applicable rate of interest on SSA for the financial year
2014-2015 is 9.1%. This is one of the highest rates of interest offered
by Government on small savings scheme
- Is interest rate fixed or variable? – The rate of interest is not fixed and will be notified by the central government on a yearly basis.
- The account can be transferred anywhere in India if the girl shifts
to a place other than the city or locality where the account stands.
- Is Premature withdrawal allowed? – 50 % (half of
the fund) of the accumulated amount in SSA can be withdrawn for girl’s
higher education and marriage after she attains 18 years of age. The
account’s balance at the end of preceding financial year is used for the
calculation.
- Can the girl child operate the account? On
attaining age of ten years, the account holder that is the girl child
may herself operate the account, however, deposit in the account may be
made by the guardian or parents.
- Is premature closure allowed? In the event of death
of the account holder, the account shall be closed immediately on
production of death certificate. the balance at the credit of the
account shall be paid along with interest till the month preceding the
month of premature closure of the account , to the guardian of the
account holder.
- The scheme would mature on completion of 21 years of the girl child,
from the date of opening of the account, with an option of keeping the
account till marriage.
- Can the girl child continue the account after her marriage? – The operation of the account shall not be permitted beyond the date of the girl’s marriage.
- What are the required documents to open Sukanya Samriddhi Account?
– Birth certificate of the girl child has to be produced. The depositor
(parents or guardian) has to submit his/her identity and address
proofs.
- On opening an account, the depositor shall be given a pass book. It
will have date of birth of the girl child, date of opening of account,
account number, name and address of the account holder and the initial
amount deposited. The depositor has to present the passbook to the post
office or bank at the time of depositing/receiving the interest/on
maturity.
Tax Benefits on Sukanya Samriddhi Account Scheme
The amount that is deposited under Sukanya Samriddhi Account will be
eligible for income tax exemption under Section 80C of Income Tax Act,
1961.
At present, only the contribution of up to Rs 1.5 lakh toward Sukanya
Samridhi Yojana is eligible for tax deduction under Section 80C. But
discussions are on to also exempt the interest income and withdrawal
amount. We can expect a formal announcement on this in the coming Union
Budget 2015-16.
(Issue of making interest income and withdrawal exempt from taxation
can be done by Department of Revenue (DoR) through legislative
amendments. The matter is under examination of DoR)
Sukanya Samriddhi Account vs Public Provident Fund (PPF)
Both Sukanya Samriddhi Account (SSA) and Public Provident Fund (PPF)
aims to seed the savings habit but both schemes have their own pros and
cons.
Stressing on the girls role in making the India competitive and
prosperous nation, Prime Minister Shri Narendra Modi has today launched a
new small savings account for the girl child “Sukanya Samriddhi
Account” as an integral part of the “Beti Bachao-Beti Padhao” campaign.
Sukanya Samriddhi Account was initially introduced by Shri Arun
Jaitely in his maiden budget speech but has been officially launched
today by Prime Minister Shri Narendra Modi. He has handed over bank
account details to five girls under the “Sukanya Samridhi Yojna” (girl
child prosperity scheme).
Sukanya Samridhi Yojna is a special deposit scheme for girl child only
but one another popular scheme to benefit child (irrespective of girl or
boy) is Public Provident Fund (PPF).
Let’s see the difference between Sukanya Samriddhi Account and Public Provident Fund (PPF)
Sukanya Samriddhi Account vs Public Provident Fund (PPF)
|
Points of Difference
|
Sukanya Samriddhi Account (SSA)
|
Public Provident Fund (PPF)
|
|
For whom
|
Only for Girl Child.
|
For every Indian Citizen.
|
|
Age Limit |
From the birth till she attains age of 10
years.
|
No age limit.
|
|
By whom |
By the girl child who has attained the age
of 10 years or by the natural or legal guardian.
|
By the Individual but by the natural or
legal guardian for the minor child.
|
|
Where to open |
Post office and nationalized banks but not
private banks.
|
Post office and nationalized banks,
including private banks.
|
|
Number of Account |
One account for each girl child, maximum up
to 2 or 3 accounts if twin girls are born in the second birth or triplets are
born in the first birth.
|
Each Individual can hold only one account in
his name.
|
|
Minimum Contribution |
Rs.1,000
|
Rs.500
|
|
Maximum Contribution |
Rs.1.5 lakhs in all accounts.
|
Rs.1.5 lakhs in all accounts.
|
|
Interest Rate
|
9.1% per annum for fiscal year 2014-15.
|
8.70% per annum for fiscal year 2014-15.
|
|
Tax Benefit on the Contribution |
Contributed Amount will be deductible u/s
80C.
|
Contributed Amount will be deductible u/s
80C.
|
|
Tax Benefit on the interest earned |
At present no tax benefit is announced for
the interest earned. A mere sum of Rs.1,5o0 will be deductible u/s 10(32) .
|
Interest Earned is tax free under PPF.
|
|
Time Period of contribution |
Minimum tenure of contribution is 14 years
from the date of opening of account.
|
Minimum 15 years and then in blocks of 5
years.
|
|
Maturity |
21 years from the date of opening of
account.
|
15 years from the fiscal year of opening of
account.
|
|
Penalty |
Rs.50 per year if minimum contribution is
not made.
|
Rs.50 per year if minimum contribution is
not made.
|
|
Mode of Deposit |
Cash or Demand Draft or Cheque
|
Cash or Demand Draft or Cheque
|
|
Premature Withdrawal |
Allowed up to 50% for the girl’s higher
education and marriage after she attains 18 years of age
|
No premature withdrawal is allowed except in
case of death of the account holder.
|
|
Loan |
No loan can be taken on the SSA balance.
|
Loan can be taken from the third year of
opening of account to the sixth year.
|
|
Taxation on Maturity |
No tax will be levied on the maturity
amount.
|
No tax will be levied on the maturity
amount.
|
Note:
- Interest rate under both the schemes will be notified each year by the Government.
2. Interest will be compounded yearly under both schemes.
3. Loan on the PPF balance is restricted to 25% of the balance at the end of 2nd year.
4. At present interest earned on SSA account is taxable in the
hands of guardian but it may get tax rebate in the upcoming budget.
5. Contributed amount get deduction u/s 80c up to Rs.1.5 lakhs including all other eligible investments.
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