The Union executive’s ‘Sukanya Samriddhi Yojana’ is a financial savings scheme designed to profit lady youngsters as a part of the “Beti Bachao – Beti Padhao” initiative. The scheme used to be initiated in 2015 with an purpose of bettering lives of ladies within the nation by means of getting rid of intercourse resolution, gender discrimination, protective women, and extending women’ participation in training and different fields. A mum or dad or parent of a woman kid elderly 10 or more youthful can open an account underneath this scheme, which gives a better rate of interest in addition to a number of tax advantages.
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The account can also be opened in publish places of work and certified banks. Currently, the SSY scheme’s rate of interest has been diminished from 8.4% to 7.6%, and it’s compounded yearly. Interest isn’t payable as soon as the scheme’s length has expired or if the woman turns into a Non-resident Indian (NRI) or a non-citizen. The executive determines the rate of interest, which is calculated quarterly.
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Key guidelines associated with the scheme
– The account matures after 21 years of opening or, within the match of the wedding of the woman kid after she beneficial properties the age of 18 years
– A untimely withdrawal of as much as 50% of funding is authorized after the kid reaches the age of 18, even supposing she does now not marry.
Minimum annual funding: 1,000
Maximum annual funding: 1.5 lakh
– Upon account adulthood, the stability (primary and pastime earned) is paid to the woman kid upon submission of an software together with evidence of citizenship, residency, and id.
Eligibility
– The account can also be opened by means of the woman kid’s mum or dad or prison parent.
– The lady kid should be underneath the age of ten.
– A lady kid might most effective have one account.
– A circle of relatives can most effective have two SSY scheme accounts.
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Tax advantages
– Investments are tax deductible underneath Section 80C of the Income Tax Act.
– An annual deduction of as much as 1.5 lakh is authorized.
– The pastime accumulated is exempt from tax fee underneath phase 10 of the Income Tax Act.
– Proceeds won upon adulthood/withdrawal also are exempt from taxation.