Sukanya Samriddhi Scheme
Understanding Tax Deductions of Sukanya Samriddhi Scheme
Hello and welcome to Part 13 of the
income tax education series brought to you by H&R Block, the global leader in
filing income tax returns. Today we will understand the tax benefits of the newly launched
Sukanya Samriddhi Scheme.
There are more than one tax benefits of this scheme. Our reforms friendly PM, Mr
Narendra Modi is a great believer in working for causes and has launched The Sukanya
Samriddhi Scheme for the benefit of the girl child. This account offers excellent
tax saving opportunity.
1. The amount invested in the account is eligible for deduction u/s 80C limit of
2. The interest that accrues on the account each year is also exempt from tax.
3. The maturity proceeds of the account are tax free.
Hence the Sukanya Samriddhi scheme is a three way tax benefit scheme. It can be
opened for girl child below the age of 10 years and is a 21 year account with part
maturity proceeds being allowed for withdrawal when the girl attains 18 years of
age. E.g. if Ashish opens an account in the name of his daughter Aishwarya aged 5
years and deposits an amount of Rs. 1,50,000 in the August 2015 then he can claim
this entire amount as a deduction from his taxable income for the year 2015-16.The
account will mature in August 2036 and Ashish may withdraw half of the amount from
the account when Aishwarya daughter attains the age of 18 years. One may note here
that although the account matures after 21 years, you may prematurely close this
account once the girl child attains the age of 18 years and is married.