Wednesday, October 5, 2022
Home Income Tax Tax Saving Schemes Sukanya Samriddhi Account Scheme – Government Tax Saving Scheme

Sukanya Samriddhi Account Scheme – Government Tax Saving Scheme

Sukanya Samriddhi Account (SSA)- Eligibility, ROI, Prematurity, Closure, Tax Benefit

The central government has introduced Sukanya Samriddhi Account Scheme 2019 on 12th December 2019 by exercising its power as per Government Savings Promotion Act 1873.

Key highlights of Sukanya Samriddhi Account Scheme – Tax Saving Scheme

Account openingAny one of the guardians can open the account in the name of a girl child.
Age of Girl child as on the date of opening of the account  Not exceeding 10 years.
Account opening form and documents  Form -1, Birth Certificate of the girl child, and documents of the guardian.
Maximum limit of accountThe account may be opened maximum of 2 girl children in one family.
Exception to maximum of 2 AccountsIn case of multiple girl birth in the first two orders of birth in a family. Further stated that exception shall not apply to a girl child in the second-order of birth, where there have been two or more surviving girl children in the first order.
Minimum initial DepositRs. 250/- & in multiple of Rs. 50/-
Subsequent depositIn multiple of Rs. 50/-
Minimum annual depositRs. 250/-
Maximum deposit in a financial yearRs. 1,50,000/-
What if mistakenly deposited in excess of Rs. 1,50,000/-No interest will be provided, excess is to be refunded to the depositor
Period of DepositThe depositor can deposit till the completion of 15 years from the date of opening of the account.
Default AccountWhere minimum initial deposit is not deposited
Revival of default accountBy paying a penalty of Rs. 50/- for each defaulting year along with the minimum annual deposit.
Revival time limitTill the completion of 15 years from the date of opening.
Rate of interest8.4% per annum. For latest ROI scroll down
Interest calculationOn lowest balance in the account between the 5th day and the end of the month.
Rounded offInterest is to be rounded off to the nearest of Rs.1/-
When interest is to be creditedAt the end of the respective financial year
Account operationGuardian can operate till the child attain the age of 18 years.
Premature closureForm – 2, in the event of the death of the account holder. Balance with interest due will be paid to the guardian.
Rate of interest in case of above scenarioThe rate on the Post office savings account will be applicable on the balance between the period of the date of death to the date of closure of the account.
Lock-in-period5 years from the date of opening of the account.
Withdrawal for education purpose50% of the balance amount at the end of the financial year preceding the year of application for withdrawal.
Condition for withdrawal for educational purposeThe child attains the age of 18 years; or
passed 10th standard [whichever is earlier]
Supporting document for educational purposeA confirmed offer of admission or a fee-slip from such an institution.
Closure before maturityFor the reason of marriage – Declaration duly signed on non-judicial stamp paper attested by the notary supported with proof of age confirming that the applicant will not be less than 18 years of age on the date of marriage.
No closure for marriage shall be allowedBefore 1 month or after 3 months from the date of marriage.
Tax benefit/ Tax Saving SchemeEligible for 80C deduction

Rate of Interest for financial year 2020-21

April to June7.6
July to September7.6
October to December7.6
January to March7.6

Sukanya Samriddhi Account can be transferred to PAN India from one post office/ bank to another.

Let us understand some basic terminology regarding Sukanya Samriddhi Account Scheme – Tax Saving Scheme:

“Account Holder”A girl child
“Birth Certificate”  Certificate issued by the municipal authority or authorized authority/ office
“Death Certificate”  Certificate issued by the Registrar of Births & Deaths or the Indian consulate as per Section 2(1)(d) of Citizenship Act, 1955
“Family”A unit comprising of a person and his spouse [Both or either of them are alive or deceased] and their children whether adopted or otherwise.
“Financial Year”Commencing from the 1st day of April and ending on the 31st day of March of the following year.
“General Rules”Government Savings Promotion General Rules 2018
“maturity”On completion of 21 years from the date of opening of the account.

Post Office Tax Saving Scheme for Senior Citizen – Senior Citizen Savings Scheme (SCSS)



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