Income Tax laws are not only meant to tax your income but also to encourage you to save or invest money. Therefore, the Income tax Act allows tax benefits on various investment schemes. Under section 80C of the I-T Act, provisions on several tax saving investment options like EPF, PPF, NSC etc. are mentioned. However, arguably the most lucrative option is Sukanya Samriddhi Yojana. This guide will help you understand important things like investment procedure, investment limit and tax benefits, etc.
Sukanya Samriddhi Yojan is one of the most popular investments in Indian government small savings scheme. This particular scheme was launched by the Indian Prime Minister, Shri. Narendra Modi. The prime objective of this investment scheme is the progress of girl child in the nation. This scheme can be availed by any parent having a girl child. The amount saved under Sukanya Samriddhi Scheme is aimed to provide for the higher education of girl and aid in for her wedding expenses.
Since its launch in FY 2015-16, so far this scheme has been very well accepted by the public. This savings scheme is an exceptional footstep towards providing financial security and financial independence to women of our country.
An SSS account can be opened by the natural or legal guardian in the name of a girl child. The account can be opened from the date of the birth of the girl child till she attains the age of 10 years. However, a depositor can operate only one account in the name of a particular one girl child. Furthermore, the legal guardian of a girl child is permitted to open maximum two accounts in the name of two different Girl children. The third SSS account in the name of the girl child can be opened in the occasion of the birth of twin girls, as second birth or if the first birth itself results in three girl children.
An SSS Account can be opened up to age of 10 years only from the date of birth. In the initial operational years of Scheme, one year grace has been given. With the grace, a girl child who is born between 2-12-2003 & 1-12-2004 can open account up to 1-12-2015.
After 10 years, SSS account can be operated by the girl child if she opts for.
To open a Sukanya Samriddhi Account, a fixed set of documents are required for any depositor. The list of required documents is mentioned below.
The entire documents are required to be submitted to either bank or post office. Along with these documents, a duly filled application form also needs to be submitted.
Under section 80C of the Income Tax Act, tax benefits are applicable on deposits made towards Sukanya Samriddhi scheme, and H&R Block India can help you get optimum tax benefits out of your investment in this scheme. You can use any of the three Income Tax Filing Services for salaried individuals like Free Online Income Tax e-Filing, Expert Tax Preparation Services and In-person Tax e-Filing.
The entire amount can be withdrawn by the account holder once she attains the age of 21. In case, an account holder wishes to withdraw partial amount; the maximum allowed partial amount is up to 50% of the deposit amount. That too she can withdraw earliest at the age of 18. Also, this partial withdrawal is allowed only in case of emergencies (like a medical emergency, higher education, marriage expenses) on providing required proofs.
|List of Authorized Banks for Sukanya Samriddhi Scheme|
|Allahabad Bank||Bank of Baroda (BoB)||Canara Bank|
|Andhra Bank||Bank of India (BoI)||Central Bank of India (CBI)|
|Axis Bank||Bank of Maharashtra (BoM)||Corporation Bank|
|Dena Bank||Indian Bank||Punjab National Bank (PNB)|
|ICICI Bank||Indian Overseas Bank (IOB)||Punjab & Sind Bank (PSB)|
|IDBI Bank||Oriental Bank of Commerce (OBC)||Syndicate Bank|
|UCO Bank||Vijaya Bank||State Bank of Bikaner & Jaipur (SBBJ)|
|Union Bank of India||State Bank of India (SBI)||State Bank of Travancore (SBT)|
|United Bank of India||State Bank of Patiala (SBP)||State Bank of Hyderabad (SBH)|
|State Bank of Mysore (SBM)|
So, as you can see, SSS is a risk-free investment scheme which also offers a good return on investment. We hope that this investment guide has given you all the information that you need to invest in this lucrative scheme.