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.
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.
Example: 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.