Prime Minister Narendra Modi has Launched Sukanya Samridhi Yojna‘ (girl child prosperity scheme) with the vision to provide for Girl Child Education and Her Marriage Expense. Sukanya Samriddhi Account Scheme is a small deposit scheme for girl child, as part of ‘Beti Bachao Beti Padhao’ campaign, which would provide income tax deduction Under section 80C of the Income Tax Act,1961 and exemption of Interest from Income Tax.
In this article we have discussed Provisions of this Scheme alongwith tax and other benefits :-
Date of Commencement of Scheme- Sukanya Samriddhi Account Scheme is been notified by Ministry of Finance vide Notification No. G.S.R.863(E) Dated 02.12.2014. Shceme become operational by notification of rules namely ‘Sukanya Samriddhi Account Rules, 2014’. These Rules were subsequently amended vide Notification No.G.S.R.323(E) dated-18.03.2016 by which government has notified ‘Sukanya Samriddhi Account Rules, 2016’. These Rules were further amended vide Notification No.G.S.R.617(E) dated-05.07.2018 by which government has notified Sukanya Samriddhi Account (Amendment) Rules, 2018. The Article Analyses these Rules for easy understanding of our readers.
Depositor– For this scheme Depositor is an individual who on behalf of a minor girl child of whom he or she is the guardian and deposits amount in account opened under this scheme. Under the revised rules definition of depositors also include Account Holder.
Who can be ‘Guardian’ under Sukanya Samriddhi Account Scheme– In relation to a minor girl Child Guardian means
(i) either father or mother; and
(ii) where neither parent is alive or is incapable of acting, a person entitled under the law for the time being in force to have the care of the property of the minor.
(iii) Under the Revised Rules Guardian Includes Legal Guardian too, Which means Parents of adopted Child adopted are also Guardian under the revised rules.
One Girl One Account– Depositor cannot open multiple or more than one account in the name of a Girl Child. Rules been changed to specify that more than once account cannot be opened for a Girl Child even if depositor are different.
Can be opened for Maximum two girls – Natural or legal guardian of a girl child allowed to open one account each for two girl children’s subject to below conditions.
Account opening for more than two girls – Under this scheme natural or legal guardian of the girl child shall be allowed to open more than two Accounts for girl children’s in a family if such children are born in the first and/or in the second order of birth, on production of a certificate to this effect from the competent medical authority regarding the birth of such multiple girl children in the first two orders of birth in a family. But account under the scheme not allowed to be opened for girl child born in second or successive birth if first order of birth itself in a particular family results in two or more surviving girl children.
Age Restriction for Opening of Account under Sukanya Samriddhi Account Scheme- The account may be opened by the natural or legal guardian in the name of a girl child from the birth of the girl child till she attains the age of ten years and any girl child, who had attained the age of ten years, one year prior to the commencement of these rules shall also be eligible for opening of account under these rules. Scheme is been commenced from 02.12.2014.
Grace Period for Opening of Account under Sukanya Samriddhi Account Scheme– Account can be opened up to age of 10 years only from the date of birth. For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 & 1.12.2004 can open account up to 1.12.2015.
Documents to Open the Account and how to open the account under Sukanya Samriddhi Account Scheme- Birth certificate of a girl child in whose name the account is opened shall be submitted by the guardian at the time of opening of the account in post office or bank along with other documents relating to identity and residence proof of the depositor.
List of Banks Authorized to Open account under Sukanya Samriddhi Yojana
1. State Bank of India 2. Andhra Bank 3. Allahabad Bank 4. Bank of Baroda 5. Bank of India 6. Punjab & Sind Bank 7. Bank of Maharashtra 8. Canara Bank 9. Central Bank of India 10. Corporation Bank 11. Dena Bank 12. Indian Bank 13. Indian Overseas Bank 14. Punjab National Bank 15. Syndicate Bank 16. UCO Bank 17. Oriental Bank of Commerce 18. Union Bank of India 19. United Bank of India 20. Vijaya Bank 21. Axis Bank Ltd. 22. ICICI Bank Ltd. 23. IDBI Bank Ltd.
Document required for opening Sukanya Samriddhi account are:-
- Birth documents of girl child (Birth certificate)
- Address proof of the Guardian
- Identity proof of the Guardian
- 3 Photos of of the Guardians and 3 photos of the child
- Pan card and Aaadhar card copies of of the Guardians
No Fixed Interest Rate- Under this scheme Interest rate is not fixed and Government will declare on yearly basis the Interest on accounts opened under these rules.
Sukanya Samriddhi Account Interest Rate Table with Minimum and Maximum Investment lImit
| S. No. | Financial Year | Date Range | Interest Rate | Minimum Investment | Maximum Investment |
|---|---|---|---|---|---|
| 1 | 2014-15 | 01/04/2014 to 31/03/2015 | 9.1 % | ₹ 1,000/- | ₹ 1,50,000/- |
| 2 | 2015-16 | 01/04/2015 to 31/03/2016 | 9.2 % | ₹ 1,000/- | ₹ 1,50,000/- |
| 3 | 2016-17 | 01/04/2016 to 30/09/2016 | 8.6% | ₹ 1,000/- | ₹ 1,50,000/- |
| 4 | 2016-17 | 01/10/2016 to 31/12/2016 | 8.5% | ₹ 1,000/- | ₹ 1,50,000/- |
| 5 | 2016-17 | 01/01/2017 to 31/03/2017 | 8.4% | ₹ 1,000/- | ₹ 1,50,000/- |
| 6 | 2017-18 | 01/04/2017 to 31/03/2018 | 8.1% | ₹ 1000 | ₹ 1,50,000/- |
| 8 | 2018-19 | 01/04/2018 to 30/09/2018 | 8.1% | ₹ 1000 (₹ 250 from 5th July 2018) | ₹ 1,50,000/- |
Interest After Maturity of account under Sukanya Samriddhi Account Scheme– Earlier post maturity also if account holder do not close the account he was eligible for interest till final closure of the account but now No interest shall be payable once the Account completes twenty-one years from the date of its opening.
No Interest on Deposit made on or after 10th day of Month
The interest shall be calculated for the calendar month on the lowest balance in an Account on the deposits made between the close of the tenth day and the end of the month. So Account holder will not get any interest on amount deposited after 10th of the Month for the Month of Deposit.
Option of Monthly Interest
Revised scheme do not gives option of Monthly Interest.
Interest Compounding Monthly/ Yearly
Interest will be compounded yearly and will be credited to account till the account completes twenty one years from the date of opening. The interest shall be calculated for the calendar month on the lowest balance in an Account on the deposits made between the close of the tenth day and the end of the month.
Interest on Contribution in Excess of Rs. 1.50 Lakh Per Annum and withdrawal of excess payment
Deposit in excess of one lakh fifty thousand rupees in any financial year shall, if accepted due to any accounting error, not be eligible for any interest and such amount, which is deposited in excess of an annual ceiling of one lakh fifty thousand rupees, may be withdrawn anytime by the depositor.
Where one can open account?– At any post office in India doing savings bank work and Branch of a commercial bank authorised by the Central Government to open an account under Sukanya Samriddhi Account Scheme.
Maximum and Minimum Deposit- The account may be opened with an initial deposit of one thousand rupees [this has been amended to Rs 250 ] and thereafter any amount in multiple of one hundred rupees (this has been amended to Rs 250 wef 05.07.2018) may be deposited subject to the condition that a minimum of one thousand rupees (this has been amended to Rs 250 wef 05.07.2018) shall be deposited in a financial year but the total money deposited in an account on a single occasion or on multiple occasions shall not exceed one lakh fifty thousand rupees in a financial year. The amount has been amended from RS 1000 to Rs 250 wef 05.07.2018 via Notification no. G.S.R. 617(E) Dated 05.07.2018
Minimum – Rs, 2,50/- Per Year
Maximum- Rs. 1,50,000/- Per Year
Term Period – Deposits can be made till completion of Fifteen Years (Earlier it was fourteen years) from the date of opening of the account. The maturity of the account is 21 years from the date of opening of account. In other words No Deposit for the period from 16th to 21st Year of account.
Regularisation of irregular account and Penalty – Where minimum amount of Rs. 250/- a year has not been deposited than such irregular account may be regularised on payment of a penalty of fifty rupees per year along with the minimum subscription of Rs.250/- for the year (s) of default any time till the account completes fourteen years.
Interest on Account in Default
If in the case of any Account, the default is not regularised within fifteen years of the opening of the Account, then the whole deposit, including the deposits made prior to the date of default, shall be eligible only for interest rate prescribed for Post Office Savings Bank at the time of its maturity and any amount credited wrongly by way of interest into an Account under default shall be reverted to the Government account as soon as it comes to the notice of the Bank or the post office concerned. if the default occurred because of the death of the guardian of the Account holder who opened the account than account holder will get interest as applicable to Sukanya Samriddhi account.
Interest on Change in Status of Account holder to non-citizen or non-resident of India
In the event of change of status of the Account holder’s citizenship or residential status, no interest shall be deemed to accrue to the Account from the change of such status and the Account shall be deemed to be closed prematurely from that date. In case, any interest was credited to the Account after the change of resident status or citizenship of the Account holder, be reverted to the Government account by the post office or the Bank concerned, immediately on being informed of such change in the status of the Account holder.
Mode of Deposit – Deposit can be made in any of the following mode :-
1. cash
2. by cheque or demand draft drawn in favour of the postmaster of the post office concerned or the Manager of the Bank concerned where the Account is opened, with an endorsement on the back of such instrument made and signed by the depositor indicating the name of the Account holder and Account number in which the deposit is to be credited;
3.through electronic means (e-transfer) in the concerned post office or Bank if such post office or bank has access to the facility of CBS.
Date of Credit of Deposit Made
(a) where the deposit is made by cheque, the date of encashment of the cheque;
(b) where the deposit is made by demand draft, the date of submission of the same to the Bank or post office; and
(c) where the deposit is made by e-transfer, the date of deposit.
Who can Operation the account and can the girl child operate the account?
(1) The Account shall be operated by the guardian till the beneficiary Account holder attains the age of ten years or till the beneficiary Account holder attains the age of eighteen years.
(2) The Account shall be operated by the beneficiary Account holder after such Account holder attains the age of eighteen years: Provided that the Account may be operated by the beneficiary Account holder after such Account holder attains the age of ten years.
Premature closure of account –
Though the duration of the Sukanya Samriddhi account is 21 years from the date of the opening of the account but request for premature closure can be made after 5 years from the date of opening of account in following scenarios :-
1. Untimely death of the account holder– In the unfortunate event of death of the beneficiary account holder (girl child), the account shall be closed immediately on production of death certificate issued by the competent authority. In that case the balance at the credit of the account shall be paid along with the accrued interest till the date of death shall be paid to the guardian.
2. Account holder become a non-citizen or NRI- If, after the opening of an Account, the Account holder becomes a non-citizen or non-resident of India, intimation to this effect shall be given by the guardian or the Account holder to the post office or the Bank concerned, as the case may be, within a period of one month from the date of such status of the Account holder’s citizenship or resident status. No interest shall be deemed to accrue to the Account from the change of such status and the Account shall be deemed to be closed prematurely from that date and credit in the account will be returned to along with interest due, to the Account Holder.
3. Extreme compassionate grounds– Where the post office or the Bank concerned is satisfied, in cases of extreme compassionate grounds such as medical support in life-threatening diseases of the Account holder or death of the guardian, that the operation or continuation of the Account is causing undue hardship to the Account holder, it may, after complete documentation, by order and for reasons to be recorded in writing, allow premature closure of the Account.
4. For Other Reasons– Premature closure of an Account may be permitted, anytime after the opening of an Account, for any reason other than provided under this sub-rule, and in which case the whole deposit shall be eligible only for the interest rate prescribed for the Post Office Savings Bank.
Pass book
(1) On opening an Account, the guardian shall be given a pass book bearing the name, address and date of birth of the Account holder, date of opening of Account, Account number, name and address of the guardian, relationship with the Account holder and the amount deposited.
(2) A duplicate passbook may be subsequently issued in the event of loss, mutilation, etc., of the original passbook, on the written request of the guardian or the Account holder, on payment of a fee of fifty rupees and such fees shall be creditable to the Government account.
(3) The guardian or the Account holder shall have the option to maintain the Account records exclusively in electronic form, provided the post office or Bank concerned has access to the facility of CBS.
Transfer of account to other place –
(1) The Account may be transferred anywhere in India and from or to post offices and from or to Banks and between post office and Bank, free of cost on furnishing of proof of shifting of residence of either the guardian or the Account holder and otherwise, on payment of a fees of one hundred rupees to the post office or the Bank to which the transfer is made.
(2) The process of transfer shall be effected electronically if the post office or the Bank concerned, has access to the facility of CBS.
Pre-Mature Withdrawal for Education
(1) Withdrawal of upto a maximum of fifty per cent of the balance in the Account at the end of the financial year preceding the year of application for withdrawal, shall be allowed for the purpose of higher education of the Account holder but such withdrawal shall not be allowed unless the Account holder attains the age of eighteen years or has passed tenth standard, whichever is earlier.
(2) The application for withdrawal shall be accompanied by a 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 clarifying such financial requirement.
(3) The withdrawal may be made as one lump sum or in instalments, not exceeding one per year, for a maximum of five years, subject to the limit specified in point (1) above.
(4) withdrawal shall be restricted to the actual demand of fee and other charges required at the time of admission as shown in the offer of admission or the relevant fee-slip issued by the educational institution.
Closure on maturity or before maturity due to Marriage of Account Holder and Payment of Interest and Principal on Maturity
(1) The Account shall mature on completion of a period of twenty-one years from the date of its opening but final closure of the Account may be permitted before completion of such period of twenty one years, if the account holder, on an application, makes a request for such premature closure for reasons of intended marriage of the Account holder and on furnishing of age proof confirming that the applicant will not be less than eighteen years of age on the date of marriage. No such premature closure shall be made before one month preceding the date of the marriage or after three months from the date of such marriage.
(2) On maturity, the balance including interest outstanding in the Account shall be payable to the Account holder, on an application by the Account holder for closure of the Account, and on furnishing documentary proof of her identity, residence and citizenship.
(3) No interest shall be payable once the Account completes twenty-one years from the date of its opening.
Tax Benefit – The amount deposited towards Sukanya Samriddhi Account is deductible under section 80C of Income tax Act,1961 upto Rs.1.5 lakhs as notified by Notification No. 09/2015 dated 21.01.2015. Amount deposited in this account will be counted in overall limit of Rs. 1.50 Lakh under section 80C. Interest earned in this scheme as well as maturity amount is exempt from Income Tax wef F.Y. 2014-15. Also Read- Interest on & withdrawal from Sukanya Samriddhi Account exempt from Tax
Comparison with PPF in respect of Tax Benefit- Investment in Both PPF & Sukanya Samriddhi Account is eligible for deduction under section 80C of the Income Tax Act, 1961. Like PPF in Sukanya Samriddhi Account also Interest and Maturity amount is exempt from Tax.
Drawback of the Sukanya Samriddhi Account Scheme-
1. High Lock in Period
2. Limitation on No. of Account
3. Scheme do not provide for online transfer of Amount in this account if account is opened with post office. It allows only payment by Cash, Cheque and Demand Draft. In respect of account with bank online transfer in this account is possible.
4. No Clarity on Future Interest Rate for this account.
Benefits of Sukanya Samriddhi Account Scheme-
1. Higher Interest Rate
2. Tax Benefit Under Section 80C
3. Payment on Maturity to Girl Child.
4. Flexibility in Deposits- Any Number of time amount can be deposits in Multiple of Rs. 250 subject to Maximum Limit of Rs. 1.50 Lakh per year.
5. Transferable Anywhere in India.
6. Even Girl Child can operate after she attains the Age of 10 Year.
Conclusion – It’s a good scheme started with a good motto by the Government with a long term vision.
Also Check – RBI Notification for Specimen of Sukanya Samriddhi Account Passbook and account opening Form
Image courtesy of David Castillo Dominici at FreeDigitalPhotos.net
(Republished with Amendments)
suknya samridhi yojna me agar meri death ho gayi to is a/c ka kya hoga, aur isme kisi tarah ka bima cover hai ya nahi please clear kare.
With 150000 max per annum for 14 yrs… U get maturity of rs. 72,00,000 after 21 yrs
Me janana chahta hu ki 12000/annuam me 21 year baad maturity kya hogi plz cleare to me this scheme
Sukanya samrudhi yojana under beti bachao beti padhao scheme is very good job done by PM Narendra modi. It encourages parents to give higher education to their daughter. ” Chalo BETI PADHAYE, desh ko aur uchai pe le jaye “
In SSA if death of depositor (parents), then who will pay ?
any insurance cover for this scheme ?
ye yojana middal class logo ke liye bahut achha he. me apko nivedan karta hu ki ye yojana lifetime chalaye. Q ki hamare bharat desh mei bahut sare garib log hai. junko beti hue hai..beti ki shadi paise na hone ke karn apni beti ko bech dete hai. isliye har nari ke sath ye bartav nai hona chaiye…BUTI BACHAO BETI PATHAO
jay hind jay maharastra
Sir ,
I want to open an account for my daughter but post office person told me this type of no scheme available .
Pls provide any mail I’d or contact details for complaint against post office department.
I already contact deputy director general (FS) but no one pick up call.
very good schme for every girl child…
Sir good sceme but no nationalized Banks are yet ready to open the A/C .I think maturity period is bit too lengthy I think it should be till 18/years.
the scheme is very good especially for girls and poor… but i am not so clear with interest calculated above…. monthly and yearly mode of payments.. in monthly payment interest calculated is 5.069 and yearly payment mode is as mentioned that is 9.10%.. Thus it really does not really help the poor since yearly payment is not possible for low income people.i am not very satisfied on the part of interest rate ??? but the scheme is good as we can deposit min 1000 yearly say Rs.100 monthly which is an opportunity for lower sections of the society.
Very good initiative.People should think of security rather only tax.
Not a good scheme. this comes under 80 C where limit is already exhausted by PF. Either Govt, should increase the limit of 80C otherwise it is waste.
Sir
it very good scheme but sir problem is that most of the people from middle class or lower of benifited. but they have no time to deposite money in post or bank. so GOI likely to use RD agents for helping peoples & GOI . so i request u to do the needful
thanx
Please clarify the calculation
Good Scheme … no claritiy incase of risk to the parent / guardian. Can someone help me on this.
Thanx 2 announce such scheme i will manage good future of my KOMAL KALI future.
can i open account in BHARTIYA MAHILA BANK ?
Baby’s birthday is 23/07/2005, Can eligible for in SSY account opening?
The GOI has not yet declared the names of authorized branches of any Bank. This shows that either they are immature or they do it for publicity and then they start taking steps. They may have simply declared that all branches of Nationalized Banks who are authorized for accepting PPF may open a/cs under this scheme.Perhaps such things may come to their minds.
my daughter is born 25/05/2005, i just want to know that she is a legible for this sukanya yojna.
Good Good Scheme Thanks P.M
When we see the Table for Interest Calculation it is coming 4.93% ie for Rs.12000/- Int shown is Rs.592 which should be Rs.1092/- for 9.1% Please receitify
for the very useful info..
Hi Thanks for the info..
Just wanted to know SSA is giving 9.1% rate of interest (which is not fixed for future) and interest in taxable.
PPF is giving 8.7% and interest in not taxable.
which one is best and you’ll suggest.
and also can you please share branch of the bank authorized to open SSA not getting details anywhere.
Thanks,
Suresh.
One thing i dont understand incase if, parent or guardian will not be more and account holder cant pay monthly Sip what will be the procedure or any insurance cover provided by government.
Hello,
yours is the only blog having a Hindi graphic displaying the name of scheme. I thought of sharing the details for our maid servant but unfortunately there is NOT a single brochure explaining the scheme.
Could you please prepare a brochure in Hindi (and other languages) for the benefit of society. You could also include taxguru branding on it somewhere.
Thank you.
The motive behind this scheme is not interest income. People in India do not educate girls and feel that their education and marriage expenses are too high. This scheme is a tool to convey that if you plan well in advance, the money will come in right amount in your hand.
PPF is not doubt better. But comparing this social scheme with PPF is not advisable. Many ppl in GPO and Banks not aware of this scheme. Wait till budget, definitely maturity amount will be announced as Tax Free.
Sukanya Samriddhi Yojana is a good scheme in terms of following:
• It can be opened in the name of a girl child below 10 years
• Present Interest Rate is 9.10%
• Amount deposited is eligible for tax deduction u/s 80c
But, there are many limitations of this Scheme:
• Interest earned on this scheme is taxable
• Interest rate 9.10% is not fixed, it can come down also
• It’s for very long term, 21 years
Compare between PPF & Sukanya Samriddhi scheme, there are many drawbacks in Sukanya Samriddhi scheme.
• PPF interest is not taxable
• PPF is for 15 years term
As per notification, amount in is deposited up to 14 year and intrest at specified rate is also earn up to 14 years. Post maturity intrest i.e. after 21 years is also same as specified intrest. But there is no any information about intrest from 15 year to 21 years. Kindly guide about it.
No use.
confused scheme.
Not worth to go for it, no benefit at all, in terms of Taxability, Liquidity and Flexibility
As a Government of India servant (DOP), it is a very good scheme announced by our Hon. Prime Minister. But I feel interest should also be under tax exemption , as it’s maturity period is too long.
Thanks
what are the provisions if one does not withdraw money for education or marriage? Can it be withdrawn at any point of time after the event as per requirement. Whether interest will accrue if not withdrawn after 21 years of account opening.
can you pl provide the name of banks to which GOVT GR is issued & operating this scheme so that one can contact & get info & open the account. most of the banks are not aware of this.
Thanks,
Prashant Raut
Better wait for 2-3 months to get the clear picture about this program and even if anybody wants esquire in post office or in banks, they are helpless as this program still in implementation stage. So give them some time to get into.
I asked in many banks and even from post office they told they don’t know about this account so where should I go
Pl say where shall I go . I Mean Govt GR are not received to all NSB banks & Post Offices Pan India. Pls Notify me about that Notification No. G.S.R.863(E) Dated 02.12.2014 Finance Ministry Of India.
Thanks,
Regards,
Mr Prabhakar Gorle
MY OPENION ABOUT THIS PLAN NOT BETTER THEN P P F
Really good
ON MARRAIGE OF A CHILD GIRL FOR CLOSING OF SUKANYA SAMURUDDHI ACCOUNT AFFIDEVIT TO BE GIVEN FOR CONFIRMING THAT GIRL IS ABOVE 18 YEARS.
BUT AT THE TIME OF OPENING BIRTH CERTIFICATE IS REQUIRED AND WHEN BIRTH CERTIFICATE IS WITH THE AUTHORITY THEN AUTOMATICALLY AGE OF THE GIRL IS
PROVED AND SO AFFIDEVIT SHOULD NOT BE ASKED FOR.
PRAFUL D MEHTA
MUMBAI
Kindly can you provide the list of Banks authorised to Open the Said account
am happy to say this its good scheme proposed by our government India but the thing is Interest earned under this scheme is taxable is not good. because its period of maturity is high.
Good scheme with 80C benefit and tax free maturity………… a great initiative by Govt., whether any TDS would be deducted on Interest income as the same is taxable, or would be treat on par with Saving fund account. Need to be clarified. List of Bank not yet notified, March is approaching, should be expedite the same.
It is a good start but interest amount should be tax free and at Maturity the Total amount should be followed by A gift from Government to Girl child on occasion of her marriage. Jai Hind.
Very elaborate article!
Query : As per news article in Times of India Interest on this account will be tax free. Request you to please clarify.
I asked in many banks and even from post office they told they don’t know about this account so where should I go
Pl say where shall I go
overall good to taxpayer
Very Nice Scheme
i don’t like this scheme due to too drawbacks are there are?
Govt should provide fixed interest i.e. 9 or more then 9% . In addition to interest earned should be tax exemted . If not possible then provide 50% discount/deduction on higher education expenditure for first girl child. It will be better to eredicate dowary system through the revised law. Otherwise open another PPF account to either girl child’s name or her mother’s name.
Very good scheme
I have 2 daughter having DOB 19/09/2000 and 04/08/2004. Can they open this account on their own?
Good Scheme