Sukanya Samriddhi Yojana (SSY) started to provide Indian girls equality and freedom in terms of features and benefits. It offers great tax benefits as well, as well as is a reliable investment option. This article discusses Sukanya Samriddhi Yojana and tax benefits.
The future of the nation is said to be in the hands of its children as boys and girls are expected to play a key role in development. India is one of the countries with the greatest potential for future growth, growth that is possible only in inclusive ways. Women in India are often denied basic rights because of their gender, making it difficult for them to realize their full potential. The Sukanya Samriddhi Scheme was introduced to close the financial gap that prevented women from doing their best. This small savings program is the brainchild of Prime Minister Narendra Modi and has the vision to provide education and marriage needs for a girl child, giving her ample opportunity to pursue her dreams.
This program offers several benefits, both for the girl child and her parents/legal guardians. The tax benefits under this scheme ensure that the deposits are not too heavy for the family fund, enabling them to continue their normal way of life without additional burdens.
On 23 July 2018, the minimum deposit terms for the Sukanya Samriddhi Yojana account were updated to Rs.250 from the previous amount of Rs.1,000. And the quarterly interest for July-September is 7.6%.
Tax Benefits under the Sukanya Samriddhi Account
Sukanya Samriddhi Yojana offers the following tax benefits to those who sign up for the program.
Investments made in this program are tax-deductible under Section 80C of the Income Tax Act. This catch is less than the maximum of Rs 1.5 lakh for this program.
This plan increases the interest that is compounded and credited to the account every year. This collected interest is tax-free, which ensures that the funds grow until they reach their maximum potential.
The investment can be deducted from maturity or at the closing of the account. This amount is tax-free, which ensures that the girl child can use the total amount without paying tax on it.
These tax provisions ensure that both the investor and the beneficiary enjoy a tax exemption, ensuring that they can continue their lives without having to worry about taxes.
Conditions of Tax Deduction Eligibility
The Sukanya Samriddhi Scheme allows provision for one investor to deposit money on behalf of a girl child. This investor can be a legal parent or guardian. Although contributions to this program are tax-deductible, only one investor may be eligible for tax exemption under Section 80C of the Income Tax Act. This means that the parent or legal guardian may want to be released, not both.
The Sukanya Samriddhi Scheme has won both the girl child and her parents/legal guardian, providing tax incentives for both of them, which paves the way for a brighter future for the child.
Who can make money from the Sukanya Samriddhi Yana Jana account?
The Girl Child who opened an account only can withdraw the amount from the account when she grows up and until the 18-year-old girl her caregiver can withdraw the amount from the account.
What is the minimum amount that can be invested in the Sukanya Samriddhi Yana Jana account?
The guardian of the girl child who opened an account in the Sukanya Samriddhi Yojana Scheme can deposit any amount from Rs. 250 to Rs. 1.5 lakh in the financial year.
Children generally appreciate the gifts that their parents give them or they may even show that they are not happy about some of the gifts they will receive in the long run. Therefore, make sure you take advantage of the investment opportunities available to you and secure your child’s financial future. With Sukanya Samriddhi Yojana you can give your baby girl the right financial protection and make sure all her future needs are taken care of even when you are away.
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LegalWindow.in is a professional technology driven platform of multidisciplined experts like CA/CS/Lawyers spanning with an aim to provide concrete solution to individuals, start-ups and other business organisation by maximising their growth at an affordable cost.