How To Apply “Tax Free Scheme” Sukanya Samriddhi Yojana 2024

What is Sukanya Samriddhi Yojana Scheme

Sukanya Samriddhi Yojana is a tax free savings scheme for girl Children. Which offers you 8.2% interest rate from January to March 2024 Quarter. You can get tax deduction of up to Rs 1.5 lakh on the principal amount that you want to invest under section 80C, and the interest rate earned will also be tax free. Due to higher interest rate and tax benefits, Sukanya Samriddhi Yojana Scheme is considered as a good scheme for many parents.

How much benefit can you get from this scheme? how much money can you make from this popular post office scheme? all you need to know about its tax and interest rates before applying for the scheme.

Sukanya Samriddhi Yojana Details

• To invest, you must be an Indian resident and have parents or guardians of your girl child.
• The girl must be 10 years of age or less to be eligible for the scheme, So that you can open your girl’s SSY account as soon as possible after she is born or less than 10 years old. It is exception to open maximum two accounts for two girls for Sukanya Samriddhi Yojana under exception.
• You can open your Sukanya Samriddhi account in post office or bank branches.
• You can open your Sukanya Samriddhi account with a minimum deposit of Rs 250 And every year you will have to deposit minimum Rs 250 and you can deposit a maximum of Rs 1.5 lakh for the financial year. You will also have the option to invest in lump sum or multiple installments.

Sukanya Samriddhi Yojana Interest Rate

For January to March 2024 Quarter, you will get 8.2% interest rate on Sukanya Samriddhi Account and remember the interest rate will be revised every quarter, and the new rate will be applicable to SSY Subsribers.

Account Maturity and Tenure

• You will have to deposit money in your Sukanya Samriddhi account for 15 years from the time the account is opened.
• The maturity of the account will remain for 21 years from the time of opening. you will have an option to close the account when the girl is about to get married when she turns 18 years old.
• This scheme allows you to withdraw 50% of the corpus, but this is only for the girl’s education expenses once she is 18 years old or has passed class 10th.
• Premature closure is permitted after 5 years from the date of opening of the account subject to the condition that the account holder dies, suffers from a life-threatening illness, or the death of guardian who is operating the account.

How will interest be credited in Sukanya Samriddhi account?

Sukanya Samriddhi Account interest is calculated for the calendar month on the lowest balance in account between the close of 5th day and end of the month. Interest will be credited to the account at the end of the financial year.

What are the tax benefits of Sukanya Samriddhi account?

Sukanya account is considers in EEE (exempt-exempt-exempt) category. You can claim tax deduction of Rs 1.5 lakh under section 80C of Income Tax Act 1961. The interest you are getting annually is also tax free And there will be no tax on the amount (principal + Interest) when the girl get into maturity level and Tax free even on partial amount withdrawal.

Your money will be considered safe in Sukanya Samriddhi account, which is a small savings scheme offered by the Government of India. As of now there is no loan facility in SSY account.

Important information before investing in Sukanya Samriddhi Account:

• You can take advantage of this small savings scheme only if you have a daughter and meet the eligibility criteria.
• This will be a long term investment of 21 years so that the daughter can achieve her future goals.
• Sukanya Yojana’s interest rate is linked to G-SEC. its rate will be revised every quarter, and it will be applicable to the existing investors, the interest rate you invest will not remain fixed for the entire tenure of your investment.
• Many investors look for products that give fixed returns on maturity and protect the invested money from volatility, for this type of investors Sukanya Samriddhi account is a good opportunity for long term savings.
• Tax (EEE) is the reason which is attracting investors towards small savings scheme.

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