Sukanya Samriddhi Yojana

About Sukanya Samriddhi Yojana:

Sukanya Samriddhi Yojana is a savings scheme launched in 2015 under the Government of India's '' Beti Bachao Beti Padhao'' campaign, which aimed to promote the education of girl children.
Sukanya Samriddhi Yojana is a small-deposit scheme tailored specifically for the girl child.
This scheme enables guardians to open a savings account for their girl child with an authorised commercial bank or India Post branch.

The girl must be an Indian resident.
The account can be opened by the girl child's parent or legal guardian.
The girl child must be below 10 years of age at the time of opening the account.
Only one Sukanya Samriddhi Yojana account is allowed for each girl child.
A family is limited to opening a maximum of two SSY scheme accounts.
NRIs are not eligible to open these accounts.
The girl child must operate the account after attaining the age of 18 years.

The minimum and maximum deposits that can be made in the account in a financial year are Rs 250 and Rs 1.5 lakh respectively. The deposits can be made in multiples of 100.
The deposits for the scheme must be made for a period of 15 years. However, the scheme matures after 21 years.
No interest will be payable after completion of twenty-one years from the date of opening the account.

For withdrawal for the purpose of education of the account holder, a maximum of 50% of the amount standing in the account at the end of the financial year preceding the year of application will be allowed.
Such withdrawal can be made only when the account holder has attained the age of 18 years or has passed 10th class, whichever is earlier.
Tax Benefits: To encourage investment in SSY, the scheme offers the following tax benefits:
Section 80C Deduction: Investments made in the SSY scheme can be deducted up to a maximum of Rs 1.5 lakh under Section 80C of the Income Tax Act.
Tax-Free Interest: Interest received on Sukanya Samriddhi Yojana account, which is compounded annually, is exempt from tax under Section 10 of the Income Tax Act.
Tax-Free Income: Income received on maturity or withdrawal from the SSY account is also exempt from income tax.

Guardian change: In case of accounts opened in the guardianship of grandparents (who are other than the legal guardian), the guardianship will be transferred to the person entitled under the law, i.e. the natural guardian (surviving parent) or legal guardian. If this is not done, the account will be closed, and it will be a permanent closure.
Irregular accounts: Families having more than two SSY accounts will face closure of the additional accounts, which will be treated as a violation of the scheme rules.
- Guardian Changes: In case of accountsopened under the guardianship of grandparents (who are other than legal guardians), the guardianship shall be transferred to a person entitled under the law in force, that is, to the natural guardian (alive parents) or Legal Guardian. If it is not done, the account will be closed, and this will be a permanent closure.
- Irregular Accounts: Families with more than two SSY accounts will face closures of excess accounts, deemed to be in violation of scheme rules.