New Delhi: Small Savings Schemes are one of the best options that can be made for your children to make a buffer or cushion for their future. One such government backed Small Savings Schemes is the Sukanya Samriddhi Account.
Sukanya Samriddhi Account can be opened in the name of a girl child till she attains the age of 10 years. Account can be opened in Post offices and notified branches of commercial banks. The rate of interest on Sukanya Samriddhi Account is 8% Per Annum, calculated on yearly basis, and Yearly compounded.
Account can be opened with a minimum of Rs 250 and Maximum Rs 1,50,000 in a financial year. Subsequent deposit in multiple of Rs 50. Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial year.
You will require the following documents to open Sukanya Samriddhi Yojana Account:
-- SSY Account opening form
-- Birth certificate of the girl child
-- Address proof of the guardian or parents of the girl child
-- ID proof of the guardian or parents of the girl child
The Sukanya Samriddhi Account gives major tax benefits to the subscribers. Investments made in Sukanya Samriddhi Account are eligible for tax deductions under Section 80C of the IT act. Deduction of up to a limit of Rs 1.5 lakh is allowed annually on Sukanya Samriddhi Account. The interest that accrues against this account which gets compounded annually is also exempt from tax under Section 10 of the Income Tax Act. The proceeds received upon maturity/withdrawal are also exempt from income tax.
