Narendra Modi Schemes: Sukanya Dev Yojna
This relates to the accrual of interest in a particular month for investing before a particular date. If you invest in Sukanya Samriddhi Yojana. The Sukanya Samriddhi Yojana account can be opened by the legal or only up to the age of 10 years from the date of birth of the girl child. Sukanya Samriddhi Yojana, Age Limit 10 years of age. 5, End Date, NA You can now open SSY for your adopted girl child; You can deposit Money Online.
Sukanya Samriddhi Account - Wikipedia
The yearly interest that will be paid is flexible or floating. This means that the interest rate may change every quarter. When the scheme started, the interest rate for fiscal year was 9.
For the fiscal yearinterest rate of 9. FY This will change again or remain fixed in next fiscal year depending on the market conditions. The interest rate is announced by the government at the beginning of each fiscal year. Tax benefits there are tax benefits! Let us take a tabular look into the tax benefits that can be expected from investing in this scheme.
Interest earnings are totally tax-free in the hands of the parents or guardians.
This means that 80C exemptions will be applicable for investments in Sukanya Samriddhi scheme till the maximum limit assigned for 80C. If the investments in this scheme exceed the total allowed exemption limit, the excess amount will be taxed.
Sukanya Samriddhi Account: Why You Should Put Money By The 10th Of Every Month
This is greater than the maximum exemption limit of INRdefined by 80C. Since FD was made first, it will continue to enjoy full exemption but the investments in Sukanya Samriddhi Scheme will fall under taxation.
Maturity period An account under this scheme will mature after 21 years from the date on which the account was initially opened. For how long do you need to keep investing?
This account will remain active for 21 years from the date on which the account has been opened. This means that if the girl participated at the age of 0 i. Similarly, if the age of the girl was 10 years on the date of participation, the account will stay active until the girl reaches the age of 31 years. However, one can has to keep investing for 14 years at least. After investing for 14 years, no further investments are allowed for the remaining 6 years but you will keep earning interests at a compounding rate.
Is it possible to withdraw money before the account matures? Yes, it is possible. The scheme has provisions for premature withdrawal.
How to open Sukanya Samriddhi Account
However, there are some strict restrictions applied. Here are the options: This withdrawal is not possible until the girl attains the age of 18 years. The only purpose for which the withdrawal is allowed in education.
Withdrawal for any other purpose is not allowed. Please remember that premature withdrawals are also tax free. However, if account was already 14 years old before the girl attained the age of 18, no future investments are required after premature withdrawal but interest earning will keep coming at compounded rate. What if you simply forget to deposit the minimum yearly amount for a certain year?
If in a year you forget to deposit INR 1, the account will become dormant. It will not to closed completely. You can simply restart the account by paying a fine of INR The account will restart from exactly where it stopped.
Who gets the maturity amount? The girl child for whom the account was opened will be the person who gets the maturity amount. The parents or the legal guardians will not get the money. The maturity amount can be withdrawn only under following circumstances: The account has run its course of 21 years and girl wishes to withdraw the money.
If the girl gets married before the account matures. Whenever the girl wishes to terminate the account after the account has matured. This means that the girl can keep the account active even after the account has remained active for 21 years.
Interest earnings will continue until the girl actually decides to terminate the account and withdraw the funds. A depositor may open and operate only one account in the name of same girl child under this scheme. The depositor or guardian can open only two SSA accounts.
There is one exception to this rule. The natural or legal guardian can open two or three accounts if twin girls are born as second birth or triplets are born in the first birth itself. Thereafter the contributions can in multiples of one hundred rupees. A maximum of Rs 1. It would fetch an interest rate of 9. The account can be opened in any post office or authorized branches of commercial banks. The account will remain operative for 21 years from the date of opening of the account or marriage of the girl child after attaining 18 years of age.
The rate of interest is not fixed and will be notified by the central government on a yearly basis.