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Sukanya Samriddhi Yojana (SSY) - Eligibility, Tax Benefits and Rules Research Team | Posted On Monday, June 03,2019, 02:40 PM

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Sukanya Samriddhi Yojana (SSY) - Eligibility, Tax Benefits and Rules



What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana or SSY scheme was introduced to address the issue of declining sex ratio of the girl child in India. The scheme aims to encourage parents of the girl child, save money for marriage and education. The scheme aims to stop gender discrimination, empower girls through financial independence and inspire them seek higher education.

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Sukanya Samriddhi Yojana (SSY) - Eligibility, Tax Benefits and Rules

How to Download the SSY Form Online?

The SSY application form is available on various websites. You can visit the websites of the following institutions to download the SSY application form:

  • The India Post website
  • The  RBI website
  • Websites of public sector banks
  • Websites of public sector banks participating in the SSY scheme.

See Also: All You Need To Know About Sukanya Samriddhi Yojana

Eligibility of Sukanya Samriddhi Yojana:

To avail the benefits of SSY scheme, the girl child, as well as her parents, must fulfil certain eligibility criteria as specified by the government.

Eligibility of the Account Holder (Girl Child):

  • The scheme is applicable only for the girl child.
  • The maximum age of the girl child shall be 10 years and below.
  • Age proof must be submitted along with the application form of the SSY scheme.

Eligibility of the Parents:

  • Only the legal guardian or the parents of the girl child can open the SSY account.
  • A maximum of two accounts can be opened under the SSY scheme.
  • In case of twins or triplets, a maximum of three accounts can be opened by the guardian or parents.

See Also: Save Tax Using the Sukanya Samriddhi Yojana

Normal Eligibility:

  • Minimum entry age is at the birth of the girl child.
  • The scheme can be availed with a minimum deposit of Rs 1,000 a year.
  • A maximum of Rs 1.5 Lakh a year can be deposited under this scheme.
  • The scheme can be opened and operated from post offices, public sector banks and even participating private sector banks.
  • The tenure of the SSY scheme is 21 years and the maturity proceeds are handed over to the account holder on submission of necessary documents and proofs.
  • Withdrawal of 50% of the account balance is allowed when the girl child attains 18 years for the purpose of funding higher education. The balance can be withdrawn only by furnishing authentic documents.

Benefits of Sukanya Samriddhi Yojana:

The scheme allows the guardian or the parents of the girl child secure her future and build an attractive corpus by depositing money in this scheme (SSY). The scheme offers an avenue for parents of the girl child to plan and save for her future, as well as avail tax benefits.

High-Interest Rate: SSY scheme currently offers an interest rate of 8.5% on deposits. The SSY scheme earns higher interest vis-à-vis most other fixed income investments. The rates are revised each quarter and are subject to change. 

Attractive Returns: SSY scheme has a lock-in period i.e. from the date of availing the scheme, till the beneficiary turns 21 years. However, the contributions can be made only for 15 years. Thereafter the deposits continue to earn interest, even if no further deposits are made.  The interest is compounded on a yearly basis and allows the principal grow. You enjoy attractive returns on maturity.

Maturity Benefits: The amount accumulated is handed over to the beneficiary at maturity. The maturity proceeds consist of the principal along with the interest accumulated over the tenure of the plan.  The amount is directly transferred to the account of the girl child either to fund higher education or for marriage. The scheme aims to empower the girl child and help achieve dreams through financial independence.

Partial Withdrawal: Partial withdrawal is allowed when the girl child attains the age of 18 years. A maximum of 50% of the SSY account balance can be withdrawn by furnishing the necessary proof and documents.

See Also: Benefits of Sukanya Samriddhi Yojana for Girl Child by the Govt of India

Tax Benefits on SSY Scheme:

  • Deposits made under the SSY scheme are eligible for income tax deduction. The parent/legal guardian can avail tax benefits under Section 80C of the Income Tax Act up to Rs 1.5 Lakhs a year.
  • The interest accumulated enjoys a tax exemption.
  • The maturity proceeds of the SSY scheme are also tax exempt.

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