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Sukanya Samriddhi Yojana (SSY) is a girl child-empowered scheme launched by the Government of India in 2015 as a part of the “Beti Bachao, Beti Padhao” campaign. The scheme is aimed at promoting the welfare of girl children and encouraging families to save for their education and marriage expenses. This is a monthly savings scheme where the account is opened in the name of the girl child.

The scheme can be opened by the legal guardian of a girl child below the age of 10, and it must be opened in the name of the girl child. The monthly deposit can be made in any post office or authorized branch of commercial banks. The minimum deposit is Rs. 250 and there is no maximum limit. Deposits can be made in multiples of Rs. 100 and can be made for a period of 14 years from the date of opening the account.

For example, if an account is opened at the age of 10, then the monthly payment must be done until 24 years. But payment will be made only for 15 years.

The scheme offers an interest rate, which is declared by the Government of India, on a quarterly basis and the deposited amount is eligible for tax benefits under Section 80C of the Income Tax Act. An important thing to remember here is the interest rate changes every quarter. The maturity period is 21 years from the date of opening of the account or the date of marriage of the girl child after she attains 18 years of age, whichever is earlier. The account can be closed prematurely in some instances and a penalty may apply. Payment can be made until the beneficiary attains 18 years.

The legal guardian must be a natural or adoptive parent and only one account is eligible to be open per person.

Rules and regulations 

Sukanya Samriddhi Yojana (SSY) has certain rules and regulations that must be followed in order to open and maintain an account. Here are some key rules and regulations of the scheme:

1. Eligibility: The scheme can be opened by the legal guardian of a girl child below the age of 10, and it must be opened in the name of the girl child. Only one account per girl child is allowed to be opened.
2. Minimum and maximum deposit: Rs250 is the minimum rupees and 1.5 lacks per year is the maximum. Deposits can be made in multiples of Rs. 100 and can be made for a period of 14 years from the date of opening the account.
3. Interest rate: The scheme offers an interest rate, which is declared by the Government of India, on a quarterly basis.
4. Maturity period: The maturity period is 21 years from the date of opening of the account or the date of marriage of the girl child after she attains 18 years of age, whichever is earlier.
5. Premature closure: The account can be closed prematurely in certain cases such as the marriage of the girl child or her death. A penalty may apply in some cases.
6. Nomination: The nomination facility is available at the time of opening the account or at any time during the currency of the account.
7. Tax benefits: Deposits made under SSY are eligible for tax benefits under Section 80C of the Income Tax Act.
8. The deposit can be made in any post office or authorized branch of commercial banks.

Interest payout

Sukanya Samriddhi Yojana (SSY) offers an interest rate on the deposit amount, which is declared by the Government of India on a quarterly basis. The interest rate is usually reviewed and announced by the Government of India on a quarterly basis.

The interest rate for the financial year 2020-2021 is 7.6% p.a. and for the year 2021-2022 is 7.1% p.a. The interest rate for the current financial year i.e 2022-2023 is 7.6% p.a.

TAX benefits 

Sukanya Samriddhi Yojana (SSY) offers several tax benefits to the depositor. The scheme is eligible for tax benefits under Section 80C of the Income Tax Act.

1. Tax Deduction: The deposit made under SSY is eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum limit of Rs. 1.5 lakhs per financial year. This means that the depositor can claim a deduction of up to Rs. 1.5 lakhs from the taxable income for the financial year in which the deposit was made.
2. Tax-free Interest: The interest earned on the deposit under SSY is tax-free. This means that the depositor does not have to pay any tax on the interest earned from the deposit.