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>What are the features of Sukanya Samriddhi Yojana Account?
Posted by nehash141 on May 24th Wholesale NFL Jerseys , 2019


To provide an incentive to people to save for their girl child, the Government of India introduced a scheme called the Sukanya Samriddhi Yojana (SSY). This scheme was introduced so that families can start saving and building a corpus for their girl child’s education and wedding expenses. In a short period of time, this account has become very popular as an excellent means to build a fund for the girl child in India because of the tax neutrality and superior rate of interest. It is to be noted that this account can be opened by parents who adopt girl children as well.


Features of Sukanya Samriddhi Account:


Who can open:

The Sukanya Samriddhi Account can be opened by the parent or legal guardian of the girl child. This account can be opened for two girls. In case the first birth is for twin girls and the second birth is for another girl child Wholesale Jerseys Free Shipping , this account can be opened for all three girl children.


When can the account be opened:
The account can be opened from the birth of the child till the time the girl child is 10 years of age.


Contributions:
The minimum contribution to open a Sukanya Samriddhi Account is Rs. 1,000 and the maximum amount that can be deposited is Rs. 1,50 Wholesale Jerseys China ,000 in a financial year.


Rate of interest:
The Government notifies the rate of interest for this account like all other small savings schemes. The interest rate is announced every quarter. The interest rate for the January to March 2019 quarter is 8.5%. The interest is compounded quarterly. Interest is added to the principal amount which then earns interest for the next quarters.


Tenure of contributions:
The deposits into this account have to be made for 14 years from the time the account is opened. So, if the account is opened when the girl child is 1 year old, the contributions will have to be made every year till the child is 15 years of age.


Maturity:
The account matures 21 years after it has been opened. If the account is opened when the child is 5 years of age Wholesale Jerseys , it will mature when she reaches 26 years of age. Contributions into the account will have to be made till she is 19 years.


Premature withdrawal:
Premature withdrawal is only allowed after the girl child reaches 18 years of age. 50% of the total amount in the account can be withdrawn. However, this can only be used for higher education or wedding expenses of the girl child.


Tax benefits:
Any investments made in the Sukanya Samriddhi Account get a tax deduction up to Rs. 1,50 Cheap Nike NFL Jerseys ,000 under Section 80C of the Income Tax Act. The interest earned on this account would be exempt from taxes as well. No tax will have to be paid on withdrawal.


How to open an account:
To open this account, a form will have to be filled in a bank or post office where the account is to be opened. Along with the form, a few documents will have to be submitted:

Birth certificate of girl childIdentification proof for girl child’s legal guardian or parentsAddress proof of legal guardian or parentsPhotograph of parent and child

Once the form is filled and submitted Cheap NFL Jerseys Wholesale , a minimum deposit also has to be made to activate the account.


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