Features of Sukanya Samriddhi Scheme

With so much stacked against her right from the time of her birth, and in some cases even before that, a girl child needs all the concessions that she can get. The Sukanya Samriddhi Scheme is a savings scheme m especially for the girl child – for her education or marriage. The Sukanya Samriddhi Yojana was launched by Prime Minister Narendra Modi on January 22nd this year with the slogan ‘Beti bachao, beti padhao’. The main features of this Scheme are outlined below:-

•    A maximum amount of Rs. 1,50,000 can be invested in this Scheme every year.

•    The full amount of investment up to this limit is exempt from tax under Section 80 C of the Income Tax Act, pursuant to a notification issued by the government under this section.

•    In his budget speech, the Finance Minister Mr. Arun Jaitely has proposed to make tax free the interest earned under this Scheme as well as the maturity proceeds.

•    These incentives make this Scheme the best Small Savings Scheme in the country, even better than the all time favourite - the Public Provident Fund.

•    An account can be opened in the name of the girl child who is called the account holder.

•    A parent or legal guardian can open such an account in her name and he is called the depositor.

•    The account can be opened at any Post Office or at the authorised branch of some commercial banks.

•    The account can be opened in the name of a girl child who is ten years of age or below. There is a relaxation up to eleven years, in this financial year alone.

•    The interest for this Scheme is at 9.1% which is even higher than the interest for PPF at 8.7%.

•    The interest rate is subject to revision every year.

•    Interest is added to the account periodically and is compounded at monthly or annual rests as per the depositor’s option.

•    The account will mature after twenty one years from the date of opening of the account.

•    If the account is not closed at maturity, it continues to earn interest at the rate specified for the Scheme.

•    If the account holder is married before the date of maturity, the interest payment is stopped.

•    There is a need to make deposits only during the first fourteen years of the Scheme, after which no deposit requires to be made and the account will continue to earn interest until maturity.

•    The account can be closed early, in case of marriage after the girl has completed eighteen years and after marriage.

•    Partial withdrawal of fifty percent of the amount outstanding in the Scheme is possible after the girl has completed eighteen years of age.

•    A minimum of Rs. 1,000 per year is to be deposited.

•    Any number of contributions per year is allowed.

•    Only one account can be opened in the name of one girl and only two accounts are possible in the names of two girls.

•    Nomination is not possible and the amount will pass to the parent or legal guardian.

What is your view about this scheme promoted by the Central Government of India? Let us know your thoughts.

Atreyee Roy (have 690 posts in total)

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