SUKANYA SAMRIDDHI ACCOUNT (SSA)

 

SUKANYA SAMRIDDHI ACCOUNT (SSA)

This is one of the flagship savings schemes launched by Government of India and adequate publicity has been accorded by different agencies to this scheme, it has generated much interest in General public. Since Sukanya Samriddhi scheme offers a host of benefits to its account holders as far as tax benefit, rate of interest etc. are concerned.

Sukanya Samriddhi Account Yojana offers a small deposit investment for the girl children as an initiative under ‘Beti Bachao Beti Padhao’ campaign. One of the key benefits of the scheme is that it is quite affordable and offers one of the highest rates of interest and interest benefits as well.

Account opening:

A natural/legal guardian on behalf of a Girl Child up to the age of 10 years.

Maximum number of accounts: Up to two girl children or three in case of twin girls as second birth or the first birth itself results in three Girl Children.

Monetary Limit: Account can be opened with Min. Rs.250 as initial deposit. A minimum of Rs. 250 is to be deposited in the financial year and thereafter in multiple of fifty rupees with annual ceiling of Rs.150000 in a FY.

Documents Required: Birth Certificate of Girl child; Address proof of parents/guardians; Identity Proof of the parents/guardian.

Tenure of the Deposit: Maximum period of the deposit is 15 years from the date of opening of the account & the tenure of the deposit is 21 years from the date of opening of the account.

Transfer of Account: Permissible from one post office to another, from bank to post office or from one bank to another bank.

Interest on Deposit: As notified by the GOI, compounded annually.

Tax Rebate: As applicable under section 80C of the IT Act, 1961 up to Rs.1.5 lakh p.a. Interest accrued in the account and withdrawals thereof are fully exempt under sec. 10(11) of Income Tax Act.

Premature Closure:  After 5 yr. in cases of extreme compassionate grounds such as medical support in life threatening diseases or death of the guardian that the operation or continuation of the account is causing undue hardship to the account holder, to be authorized by an order by the Central Government supported by complete document.  In the event of change of status of account holder i.e. citizenship or residential status.  Premature closure is also permitted in the event of marriage of the account holder if she has attained the age of 18 years.  The account can be prematurely closed in the event of death of the account holder at any point of time after opening subject to payment of interest at Post Office Savings Bank rate for the balance held in the account.

Irregular Payment/ Revival of account: If there is no deposit in a financial year, is called a default in the subscription. It can be condoned by depositing Rs.250 (subscription amount) and Rs.50 (default fee) for each financial year of default.

Mode of Deposit: Deposit can be made through Cash/Cheque/ Demand Draft/Online.

 

 

Withdrawal:  Withdrawal is permissible only when the girl has attained the age of 18 years or has passed 10th standard whichever is earlier. To meet the financial requirements at the time of higher education. 50% of the previous financial year’s balance can be withdrawn in lump sum or in five yearly installments. The application for withdrawal shall be accompanied by documentary proof in the form of a confirmed offer of admission of the account holder in an educational institution or a fee-slip from such institution indicating such financial requirement. Closure on Maturity: Completion of 21 years from the date of opening of the account & where the marriage of the account holder takes place before completion of such period of 21 years. (Affidavit verifying Account Holder’s 18 years of age as on date of closing of account provided that no such closure shall be allowed before one month from the date of intended marriage or after three months from the date of marriage). No interest is payable after completion of 21 years from the date of opening.