Understanding Sukanya Samridhi Account Yojana

The Sukanya Samriddhi  Account (SSA) is an initiative started by the Government of India as a part of its Beti Bachao Beti Padhao campaign.

This scheme was launched with the view to encourage parents of a girl child to build a fund for education and marriage expenses of their girl child.

At present, the scheme provides interest at the rate of 8.1% per annum and is set to mature after 21 years from the date of opening or when the girl child gets married, whichever is earlier.

The account can be opened in any post office or any other authorized commercial bank with a minimum deposit of Rs. 250 and maximum 1.5 Lakhs can be deposited every year in the name of the girl child.

There are no limitations on the number of deposits which are made in a month or a year. The account even allows for a partial withdrawal from the fund when the girl turns 18 years old to support payments towards expenses for her education or even her marriage.

The scheme is highly appreciated because of its tax benefits. It provides a maximum tax benefit of Rs 1.5 Lakhs under section 80C of the Income-tax Act. Further, the interest accrued and maturity amount is also exempt from tax. 

Unfortunately in the event of death of the account holder, the account shall be closed immediately on production of death certificate issued by the competent authority and 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.  

Following eligibility criteria needs to be followed to open SSA: 

a) Age of girl child should not be more than 10 years

b) She should be a resident citizen of India 
c) Accounts can be opened for a Maximum of two girl children in single family.

Advantages of Sukanya Samridhi Account

• It provides best interest rate of interest (8.1% p.a.) amongst all Government back schemes.
• Tax benefit is one of the major reasons to invest in the account.
• Partial withdrawal is of 50% is possible which is also tax free. 50% withdrawal of the balance before the 18 years of the age is also possible if the girl has passed 10th class and the purpose of withdrawal is education.

Documents required to open the Account

• Birth certificate of the girl child
• Identity and residential proof of the guardian
• Any other documents as required by post office or banks.

By launching this scheme government hopes to improve the condition of girl child in the society and impart the message of not taking them as a burden.

If guardians have planned properly than a powerful fund can be created until is girl is ready for higher education.

Suppose parents invest a sum of Rs. 10,000 per year for 21years then a good amount of more than Rs. 5,50,000/- can be accumulated at the end of 21 years.