What is Sukanya Samriddhi Scheme?
The Sukanya Samriddhi Scheme is a savings and investment option offered by the government of India through the India Post Office. It is a long-term investment option that allows individuals to earn a fixed rate of interest on their savings, and is specifically targeted towards the financial security and education of the girl child. The Sukanya Samriddhi Scheme is a tax-saving investment option, as the contributions made to the account are eligible for tax deductions under section 80C of the Income Tax Act.
Eligibility for Sukanya Samriddhi Scheme
The Sukanya Samriddhi Scheme can be opened by the legal guardian of a girl child who is below the age of 10 years. Only one account can be opened per girl child, and the account must be opened in the name of the girl child. Non-resident Indians (NRIs) are not eligible to open a Sukanya Samriddhi Scheme account.
How to Open a Sukanya Samriddhi Scheme Account
The Sukanya Samriddhi Scheme can be opened at any designated post office in India. To open a Sukanya Samriddhi Scheme account, the individual must fill out an application form and provide proof of identity and address of the legal guardian, as well as proof of birth of the girl child. The minimum investment amount for the Sukanya Samriddhi Scheme is INR 250 (Indian Rupees) per year, and the maximum investment limit is INR 1,50,000 (Indian Rupees) per year.
Maturity Period of Sukanya Samriddhi Scheme
The Sukanya Samriddhi Scheme has a maturity period of 21 years from the date of opening the account, or until the girl child reaches the age of 18 years, whichever is earlier.
Interest Rate on Sukanya Samriddhi Scheme
The interest rate on the Sukanya Samriddhi Scheme is determined by the government and is reviewed periodically. The current interest rate on the Sukanya Samriddhi Scheme is 7.6% per annum, compounded annually.
Tax Benefits of Sukanya Samriddhi Scheme
In addition to being a savings and investment option, the Sukanya Samriddhi Scheme is also a tax-saving instrument. The contributions made to the Sukanya Samriddhi Scheme are eligible for tax deductions under section 80C of the Income Tax Act. The interest earned on the Sukanya Samriddhi Scheme is also tax-exempt.
Sukanya Samriddhi Scheme as a Savings and Investment Option
The Sukanya Samriddhi Scheme is a safe and secure investment option with moderate returns, and is a popular choice among individuals looking to save and invest for the long term for the financial security and education of the girl child. It is an investment option worth considering for anyone looking to set aside a portion of their income for the future of their girl child.
Conclusion
The Sukanya Samriddhi Scheme is a savings and investment option offered by the government of India through the India Post Office. It is a long-term investment option that allows individuals to earn a fixed rate of interest on their savings, and is specifically targeted towards the financial security and education of the girl child. The Sukanya Samriddhi Scheme is a tax-saving