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Sukanya Samriddhi Yojana/Scheme Details (SSS)

Last Update Date : April 30, 2019
Estimated Read Time: 6 min

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 Scheme

What is Sukanya Samriddhi Yojana?

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.

Who can Open Sukanya Samriddhi Account?

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.

How to Open Sukanya Samriddhi Account?

  • Sukanya Samriddhi Account can be opened by natural or legal guardians of a girl child. They can open at either banks or post offices.
  • There are no changes either in characteristics or in benefits of SSS whether it is opened at an authorised bank or at the post office. The terms and conditions remain the same in both instances.
  • When the SSS was introduced in FY 2015-16, the rate of interest was 9.1% per annum.
  • The current rate of interest per annum (WEF 1-Jan-2018) is 8.1%. The interest is computed on an annual basis and compounded yearly.
  • Under Sukanya Samriddhi Scheme, the minimum deposit amount is INR 1,000 per year, and maximum deposit amount is INR 1,50,000 per year.
  • Successive deposit in multiples of INR 100 can be made in lump-sum. There is no limit on the number of deposits either in a month or in a financial year, which is the best feature for any depositor. This encourages any legal or natural guardian of a girl child to invest in this scheme.
  • As per rules, if a depositor fails to deposit minimum INR 1,000 during a financial year, SSS account will be discontinued. It can be reactivated/revived after bearing a penalty of INR 50 per annum and due deposit amount.

Application procedure for Sukanya Samriddhi Yojana

  • The online application form for Sukanya Samriddhi Scheme is accessible on all authorised bank websites as well as on the post office websites.
  • The application form can be downloaded from any of the Bank websites mentioned below.
  • A depositor can then print and fill details in the hard copy and submit it to the centre to accelerate the process of account opening.
  • On the other hand, all post offices and authorised bank branches provide a hard copy of the application form for those who are unable to download.
  • The form is very simple and easy to fill up. It comprises details such as:
    1. Name and age of the account holder
    2. Identification details of the account holder
    3. Contact details of the account holder
    4. The rest of the form details are about official use by banks or post offices.

Documents Required for Sukanya Samriddhi Scheme

To open a Sukanya Samriddhi Account, a fixed set of documents are required for any depositor. The list of required documents is mentioned below.

  • Sukanya Samriddhi Account Opening Form
  • Birth Certificate of a girl child (Account Beneficiary)
  • Identity Proof of a depositor (Parent or legal guardian)
    (PAN card, Ration card, Driving License, Passport)
  • Residential / Address Proof of depositor (Parent or legal guardian)
    (Passport, Ration Card, Electricity Bill, Telephone Bill, Driving License)

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.

Benefits of Investing in the Sukanya Samriddhi Yojana

  • This scheme aims at financial independence of an Indian woman
  • The amount required to be deposited for 14 years. It means if a guardian has opened an account at the age of 6 of a girl child, the amount needs to be deposited till she turns 20. The deposited amount can be used in marriage, higher education, or any other requirement of a girl child when she attains the age of 21.
  • The amount can be withdrawn only by an account holder, even her guardian (depositor) cannot withdraw the amount
  • This should be “Partial withdrawals are allowed only after the girl attains 18years of age that too for her higher education or marriage”.
  • SSY account is transferrable across India at any post office or any bank account
  • There is no restriction on the fixed number of deposits. The depositor is free to deposit in any multiple of INR 100
  • As per the feature of this scheme, the SSY account will not earn any interest once it is matured.

Tax Benefits of Investing in Sukanya Samriddhi Yojana

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 and Expert Tax Preparation Services.

  • Sukanya Samriddhi Yojana not only benefits girl child in the country but also helps her parents or legal guardians who operate the account on their daughter’s behalf. It provides two-way benefits, improves the financial status of nation’s girls and offers tax relief to the persons who avail this scheme.
  • Alike all various deductions under section 80C, the maximum limit for tax-deductible amount for SSS is also INR 1,50,000 per annum. Any amount deposited over and above INR 1,50,000 is not considered for any tax rebate.

Withdrawal of Invested Amount in Sukanya Samriddhi Scheme

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 BankBank of Baroda (BoB)Canara Bank
Andhra BankBank of India (BoI)Central Bank of India (CBI)
Axis BankBank of Maharashtra (BoM)Corporation Bank
Dena BankIndian BankPunjab National Bank (PNB)
ICICI BankIndian Overseas Bank (IOB)Punjab & Sind Bank (PSB)
IDBI BankOriental Bank of Commerce (OBC)Syndicate Bank
UCO BankVijaya BankState Bank of Bikaner & Jaipur (SBBJ)
Union Bank of IndiaState Bank of India (SBI)State Bank of Travancore (SBT)
United Bank of IndiaState 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.

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CA Shreya Oturkar
Shreya is a tax advisor at H&R Block (India) with intensive experience in SME taxation and audit. She holds an advanced post graduate qualification in accounting and is highly skilled in financial analysis and reporting. Apart from her professional achievements, Shreya is a talented artist with a flair for free-hand sketching!

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