Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana

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Sukanya Samriddhi Yojana refers to a government-backed small deposit scheme for a girl child and her financial needs in India. It was ushered in as a feature of the 'Beti Bachao Beti Padhao' crusade. The returns are also exempted from tax under the scheme's section 80C income tax benefit. The Sukanya Samriddhi Yojana was established with the intention of assisting the female child's parents in constructing a corpus for their daughter that could assist her in achieving objectives such as marriage and education. Before creating an account, you should investigate its numerous features. A Sukanya Samriddhi Account, which requires a minimum deposit of Rs 250, can be opened at any time after a girl child is born until she is 10 years old. During the current fiscal year, a minimum of Rs 250 and a maximum of Rs 1.5 lakh may be deposited in subsequent years. The girl will be able to use the account until her 18th birthday or until she marries. The account will be open for 21 years. After the child reaches the age of 18, partial withdrawals of 50% of the balance are permitted to meet the requirement for the child's higher education costs.

Under the Sukanya Samriddhi Yojana ,as parents, you can put a minimum of Rs 1,000 and a maximum of Rs 1.5 lakh into your daughter's account each year. After the account is opened, these deposits can only be made for the first 15 years. After that, the account's funds will grow as a result of the compound interest that has been accrued. As a result, when your daughter turns major, the money can support her aspirations of going to college, starting a business, or getting married.

Advantages of the Sukanya Samriddhi Yojana

1 - It offers financial security for girls at a higher rate of interest than other savings plans. The government announces the applicable interest rate for each fiscal year, and your investments' interest is compounded annually. Because of the power of compounding, the assets in your Sukanya Samriddhi Yojana account will grow exponentially by the time you reach maturity.

2. Significant Savings on Taxes Section 80C of the Income Tax Act of 1961 allows you to deduct your contributions to the Sukanya Samriddhi Yojana for your daughter's future. As a result, investments up to Rs 1.5 lakh can be deducted from your taxable income. In addition, the interest earned and the amount received upon maturity or withdrawal are eligible for the tax savings. One of the most well-liked investment schemes with the exempt-exempt-exempt (EEE) status is the Sukanya Samriddhi Yojana, which is administered by the Department of Revenue (DOR).

3. Guaranteed Maturity Benefits - Your Sukanya Samriddhi Yojana account balance, including any accumulated interest, will be paid directly to the girl child (or policyholder) upon maturity. As a result, the scheme basically enables your daughter to become financially independent and empowered when she is old enough to make her own life choices. Another advantage of investing in the Sukanya Samriddhi Yojana is that your accumulated savings will continue to earn compound interest until the account holder closes it.

Let us also take a look at the Sukanya Samriddhi Yojana's tax advantages.

a) An SSY account can be deducted under section 80C of the Income Tax Act because it is an investment. A deduction of up to Rs 1,50,000 is available to you.

b) In addition, your deposit account's compound interest is not subject to tax.

c) Withdrawals are also free of tax. As a result, you won't have to pay any fees when you cash out your account when it reaches maturity.

Because of this, Sukanya Samriddhi Yojana is an E-E-E instrument. Basically, Exempt, Exempt, and Exempt.