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Sukanya Samriddhi Yojna

Eligibility

A Sukanya Samriddhi Account can be opened by the guardian in the name of a girl child till she attains the age of ten years. Only one account is allowed per girl child. Parents can open this account for a maximum of two children.

Opening of Account

Account can be opened in post offices, nationalized banks and also in private banks which have tie up

Minimum Contribution

A minimum of Rs. 1,000 has to be deposited in the account every year. There is no limit on number of deposits either in a month or in a financial year.

Maximum Contribution

A maximum of Rs. 1,50,000 can be deposited every year per account.

Interest Rate

Interest rate is not fixed. For the financial year 2014-15 interest declared is 9.10% and for year 2015-16 interest in 9.20%.

Tax Benefits

Deduction under section 80C is allowed for amount deposited under this account. Also the interest income and withdrawals are not liable to income tax.

Maturity

The Sukanya Samriddhi Account can be closed after the girl child in whose name the account was opened completes the age of 21. If account is not closed after maturity, the balance will continue to earn interest as specified.

Withdrawal

Up to 50 per cent of the accumulated amount can be withdrawn after the account holder turns 18 while full withdrawal is possible after she turns 21.

Documents Required for opening of account

  1. Birth Certificate of the Girl Child having Name on it.
  2. Identity Proof of the Parent or Legal Guardian.
  3. Address Proof of the Parent or Legal Guardian.

Comparison between Public Provident Fund (PPF) and Sukanya Samriddhi Account

Particulars PPF PPF
Eligible Person Any Indian Citizen Only girl child of less than 10 years of age can open account through parents or guardian
Maximum Investment Rs. 1.5 Lakh/year Rs. 1.5 Lakh/year
Minimum Investment Rs. 500/year Rs. 1,000/year
Interest rate for 2015-16 8.7% 9.2%
Deduction allowed  under section 80C under section 80C
Interest and withdrawals Tax free Tax free

About Prateek Agarwal

I am Chartered Accountant by profession, practicing in Jaipur. I have interest in accounting and taxation field.

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