Skip to main content

Sukanya Samriddhi Yojana

 

With an aim to improve the gender inequality, Government of India has done a great initiation by launching "Sukanya Samriddhi Yojana" as an integral part of "Beti Bachao Beti Padhao" campaign.

 

I have been getting tremendous questions on the various aspects of the Sukanya Samriddhi scheme, so I thought of scribing down all the questions that were asked from me with few questions from my side which I think needed to be answered.

Interest Rate for 2015-16 has been hiked to 9.2% per annum from 9.10% per annum.

FAQs on Sukanya Samriddhi Account


1. Age Limit:

The account under Sukanya Samriddhi Yojana can be open till the girl child reaches the age of 10 years. Once she crosses the age of 10 years, she shall become ineligible for opening account under this scheme.

2. Buffer Time of 1 year

The Age limit is restricted to 10 years but Government has stipulated a buffer time of 1 year. This means the girl child who has attained the age of 10 years 1 year prior to the announcement i.e. the girl child born between 2 December 2003 and 1 December 2004 can open sukanya samridhhi account up to till 1 December 2015.

3. Authorized Banks and Post Offices

Sukanya Samriddhi Account is almost a replica of Provident Fund Account, so the authorized banks may also be the same as of PPF scheme. Although the list of authorized banks have not been published but in the government notification, banks includes all the commercial banks. Thus we can assume that the banks authorized to open account under PPF scheme is also eligible to open account under Sukanya Samriddhi Yojana.

 

So the lists of bank which may be authorized to open account are:

  1. State Bank of India
  2. State Bank of Patiala
  3. State Bank of Bikaner & Jaipur
  4. State Bank of Travancore
  5. State Bank of Hyderabad
  6. State Bank of Mysore
  7. Andhra Bank
  8. Allahabad Bank
  9. Bank of Baroda
  10. Bank of India
  11. Punjab & Sind Bank
  12. Bank of Maharashtra
  13. Canara Bank
  14. Central Bank of India
  15. Corporation Bank
  16. Dena Bank
  17. Indian Bank
  18. Indian Overseas Bank
  19. Punjab National Bank
  20. Syndicate Bank
  21. UCO Bank
  22. Oriental Bank of Commerce
  23. Union Bank of India
  24. United Bank of India
  25. Vijaya Bank
  26. Axis Bank Ltd.
  27. ICICI Bank Ltd.
  28. IDBI Bank Ltd.

Please note that HDFC Bank is not authorized to open PPF Account but let's see whether it gets authorization to open sukanya samriddhi account or not? Also please visit the banks to get more information.

Apart from the above banks, all the post offices are authorized to open account under Sukanya Samriddhi Yojana.

4. Taxation on Sukanya Samriddi Scheme

At present the contribution made towards the SSA is included in the list of section 80C. The ceiling limit of deduction is Rs.1.50 lakhs. This limit also takes account of all the existing investments such as PPF, bank 5 years FD, LIC etc.

Sukanya Samriddhi Scheme has been put into EEE category in Budget 2015 i.e. Sukanya Samriddhi Account Scheme has become fully tax-free.

 

As far as the interest is concerned, the same will be taxable in the hands of the guardian and taxable as per the slab rate he falls in. Only a deduction up to Rs.1,500 is available from the interest earned u/s 64.

There is no official statement on the redemption amount as whether the same will be tax-free or taxable but by looking at the purpose behind the scheme i.e. funding the marriage of girl, it can be pre-assumed that the sukanya samriddhi yojana may get EEE tax treatment.

5. Non-Resident Indians (NRI)

Sukanya Samridhi scheme is a small savings scheme and governed by Post Office Savings Account Rules, 1981. As per RBI guidelines, a Non-Resident Indian (NRI) may not be eligible to invest in Small Savings schemes but still official remarks are waiting on this.

6. Documents to open account

To open this account following documents are required to be submitted.

  1. Birth Certificate of Girl Child
  2. Identity proof of the depositor i.e. parent or legal guardian
  3. Address proof of the depositor i.e. parent or legal guardian

In case Birth Certificate of girl child is not available than birth certificate from the school headmaster or from the hospital where girl child was born is also valid.

 

7. Death of Girl Child or the Depositor?

In case of death of the girl child i.e. the account holder;

  1. The accounts will get closed; and
  2. The balance i.e. the amount deposited including accrued interest will be refundable to the guardian.

In case of death of the depositor and no one can further deposit any amount, then there may be two instances:

  1. The amount including interest will be refunded to the family of the girl child; or
  2. The balance may not be refunded and kept in the account till the maturity without the need of fresh contribution. Further, the balance kept in the account may keep earning interest.

Although, there are no official words on the above conditions, so let's hope that Budget 2015 will clear all the doubts.

 

8. Conversion of Existing Account

Unfortunately, conversion of existing savings account to sukanya samriddhi account is not permissible. You need to open a new account.

9. Premature Withdrawal

Premature withdrawal up to 50% is allowed for girl's higher education and marriage after she attains 18 years of age.

 

The account can also be closed before the stipulated time period if it is causing any hardship on the depositor.

10. Maturity Amount

 

11. Is this scheme available throughout India?

Yes, Sukanya Samridhhi Yojana embraces all the states of India and account can be open anywhere in India.

12. Is Account Transferable?

The sukanya samriddhi account is freely transferable anywhere in India if the girl moves to a place other than the city or locality where the account is opened.

13. Are commission agents or any intermediary allowed?

No, commission agents may not be allowed under Sukanya Samridhhi scheme.

14. PPF or Sukanya Samriddhi Account?

 

15. Sukanya Samriddhi Account or Recurring Deposits?

 

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. IDFC Tax Advantage (ELSS) Fund

4. ICICI Prudential Long Term Equity Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. DSP BlackRock Tax Saver Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. HDFC TaxSaver

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online

Invest in Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

Real Returns in Investing

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Real Returns in Investing     A Anil Singh (name changed), 44, works with a private company and believes in investing his entire savings in fixed deposits. His financials from the year 2000 till date is given in the table. Anil's savings in FDs gave him an average return of around 8%. The total amount saved over the 174 months (From January 2000 to June 2014) is Rs 49.80 lakh. The value of his investment today is around Rs 66.71 lakh. Naveen Singh (name changed), 44, works in a similar profile like Anil. However his expenses were on the higher side. His financials are as in the table. Naveen invested only in equities. The total amount saved over the 174 months (From January 2000 to June 2014) is Rs 38.40 lakh. The v...

Budget 2014 Highlights for Saving

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   The new finance minister Arun Jaitley has just presented his first budget. What measures does the budget contain that will specifically impact savers and investors? Here they are: 1. Housing loans exemption for self-occupied properties increased to Rs2 lakh: Earlier this amount was Rs1.5 lakhs. This move barely keeps pace with the inflation in asset values.   2. Investment limit under 80 (C) increased to Rs1.5 lakh: This is a good move again and offers some relief to taxpayers.   3. IT exemption increased to Rs2.5 lakh, Rs3 lakh for senior citizens. This comes as a minor relief for taxpayers.   4. Annual PPF ceiling to be enhanced to Rs1.5 lakh, from Rs1 lakh: This is in tune with the change in 80C.   5. Long term capital gains tax for debt funds has been rai...

ICICI Prudential MIP 25 - Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential MIP 25     (CRISIL Rank 2)   This scheme was launched March 2004. Please see the chart below for the one, two, three and five years annualized returns from this scheme. The minimum investment in the scheme is Rs 5,000. The asset allocation of the portfolio is 24% equity, 72% debt and 4% cash equivalent and others. Please see the chart below for the monthly dividends declared by the scheme, on a per unit basis, over the last 5 years.   For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mai...

Franklin India Smaller Companies Fund - Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Franklin India Smaller Companies Fund   While the universe of small-cap stocks in India is vast, there are very few equity funds which take on the task of sifting through this space for good long-term bets. Franklin India Smaller Companies Fund has managed this with aplomb. What we like about this fund is its significant out-performance of its category and benchmark over the last four years, and its ability to moderate portfolio risk despite investing in the riskiest segment of the equity market. This fund's stock selection strategy, like that of Franklin India Prima Fund is focused on finding companies that generate positive cash flows across business cycles. High return on investment and manageable leverage are also filtering criteria. Says R. Janakiraman, fund ma...

How to open a Capital Gains Account?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   How to open a Capital Gains Account? You can open a capital gains account in an authorized bank. The Government has notified 28 banks which can open the Capital Gains Account on behalf of the Government. You have to apply for opening the account by filling out the required application form (Form A) and submit proof of address, PAN card and photograph. You cannot withdraw funds from a capital gains account using a cheque book or ATM, like you do in your normal savings bank account. There are procedures to be followed to withdraw funds from the capital gains account. Investment in Specified Bonds Section 54EC of Income Act provide that if the seller invests whole or part of capital gains arising from the sale of asset in specified Capital Gains, within a period of six months of the ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now