Sukanya Samridhi Scheme is another important initiative by central government to enhance the welfare of minor girl children. This scheme has been opened for the girl children with the age less than 10 years. This small saving scheme can be opened and handled by either the parents or the guardians of the child. To spread its benefits to more and more people, government has also provided a buffering period that will help the female children who are born from December 2003 to December 2004 to get registered in the scheme. This scheme can be operated through a post office or a public sector bank
Tax Benefits of Sukanya Samridhi Scheme
The tax deductions in case of SukanyaSamridhi scheme comes under section 80C up to a total deposit of INR 1,50,000. The interest made on the deposit is fully tax-free as per the budget 2015.
Sukanya Samriddhi Yojana Benefits
Sukanya Samriddhi scheme is a phenomenal step by the government of India and it was launched on 22nd January, 2015. It is a part of India’s ‘Beti Bachao- Beti Padhao’ initiative. It is a small savings scheme. The scheme can be opened by the parents of a girl or a legal guardian of her in any post office or in some of the authorized commercial banks.
The interest rate of the scheme was 9.1 percent but it has increased to 9.2 percent in this year. It is not a fixed rate and it will be revised every year. The scheme can be opened in the name of a girl child right from her birth. The scheme can be opened till she attains 11.
Only one account can be opened per girl child. But in case of twin children or triplets, one can open two and three accounts respectively. For keeping the account active, one has to deposit a minimum of RS 1,000 in a financial year. If somebody fails to do so, he has to pay a penalty of RS 50 and also deposit the minimum amount of RS 1,000 in the following year. One can deposit a maximum of RS 1,50,000 in a year. There are no limits in terms of the number of contribution per year.
The entire length of the scheme is 21 years. The scheme will start right from the date the account was opened and it will continue till 21 years. One can even earn interest after 21 years if the account is still active. One needs to make contribution to the scheme for the first 14 years only. In the remaining seven years one will earn interest from the scheme without depositing.
This account can be closed in advance if the girl reaches 18 years of age and if she gets married before the withdrawal. One can also make a partial withdrawal to the extent of 50% of the balance standing at the previous financial year but only if the girl reaches the age of 18. After the account is matured the entire money will be given to the account holder i.e. the girl child which indeed is a great procedure as it gives independence to the girls.
The procedure of payment is cash, check or demand draft and no online payment is available currently on this scheme. The superlative part of the scheme is that it offers tax free management on interest earnings. If we closely observe the factors stated above about the scheme, we get to know that it is better than the PPF scheme of India and it offers complete independence to the girls. It is indeed a scheme built up with well intention and it is far better than the so called child insurance plans. The child insurance plans are only beneficial to the agent. But the Sukanya Samriddhi Scheme is beneficial to the account holder and it helps a lot in terms of a girl’s study matters, marriage matters. It also gives them the independence to seek a partial withdrawal for any kind of emergency. Having a girl child itself is a blessing and also going on with the scheme secures their future and ensures their study which is also a blessing to the family and overall to the country.