Minor Daughter - SSY

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This discussion clarifies common queries regarding the Sukanya Samriddhi Yojana (SSY). It confirms that both parents can contribute to their daughters' SSY accounts, even separately. The thread also addresses whether HUFs can contribute and explains that while HUF contributions are possible, they don't offer tax benefits. Importantly, maturity proceeds are tax-exempt and belong solely to the account holder after 21 years, not being clubbed with parental income.

Ankur Aggarwal

Ankur Aggarwal (Querist)
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17 September 2024 Hi,

I have 2 daughters, 7 months and 3 years old. Me and my wife are both salaried professionals. I want to invest in Sukanya Samriddhi Yojana (SSY) for both my daughters. Me and my wife already invest in our own PPF's. I have a few queries:

1. Can I pay in SSY for both my daughters ?
2. Can I pay in SSY of one daughter and my wife can pay in SSY of the other daughter ? If my wife is paying in one daughter's SSY, she has to be made the legal guardian for that daughter's SSY?
3. Can my HUF pay in SSY of my daughters ?
4. Can my father's HUF pay in my daughter's SSY i.e grandfather's HUF paying for SSY of granddaughter?
5. Can my father pay in my daughter's SSY i.e grandfather paying for SSY of granddaughter?
6. When the account turns 21 years, the maturity proceeds will be given. Will the income generated by this amount be clubbed with my income after 21 years?

Thanks in Advance.

Ankur Aggarwal

Ankur Aggarwal (Querist)
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08 October 2024 Hi,

Please experts help on this.

Ankur Aggarwal

Ankur Aggarwal (Querist)
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06 November 2024 Hi,

Please experts help on this.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 November 2024 1. Yes.
2. Yes, correct (natural guardian for each separately).
3. Yes, but won't get tax benefit.
4. It will be assumed to be paid by the guardian.
5. Same as above 4.
6. No. The girl will be owner of the account (holder herself), and the maturity amount will be issued to her.
The total amount will be tax exempt under EEE mode.

Ankur Aggarwal

Ankur Aggarwal (Querist)
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11 February 2025 Hello Sir,
Thanks for the replies. Just a follow up on the same :

I am paying for my daughter's SSY. On my personal balance sheet, will it be considered a gift to my daughter. Also, the money should be transferred to my daughter's savings account and then to her SSY or should I directly transfer money to her SSY.

Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 February 2025 Consider it as Gift to daughter. You should directly pay in her SSY account.

Ankur Aggarwal

Ankur Aggarwal (Querist)
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11 February 2025 Thank you sir for your help and guidance always.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 February 2025 You are welcome.

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