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Showing posts with label New term deposit scheme Sukanya Samriddhi in U/s 80C. Show all posts
Showing posts with label New term deposit scheme Sukanya Samriddhi in U/s 80C. Show all posts

Monday 16 March 2015

Last month Prime Minister Narendra Modi launched the "Sukanya Samriddhi Yojana" a part of the "Beti Bachao Beti Padhao" campaign. Focus on gender equality and opportunities for the girl child are the main themes of the Yojana.
Sukanya
Where Can You Open The Sukanya Samriddhi Yojana Account? 
This account can be opened at post offices and commercial banks. Most of the commercial banks particularly the PSU banks will enable you to open this account.
While at the moment the list is not drawn and many government owned banks are still in the process of completing formalities to open the Sukanya Samriddhi Yojana Account, you may visit any of the government banks for the purpose of opening the account. Some of these banks include:
1) State Bank of India
2) Bank of Baroda
3) Punjab National Bank
4) Bank of India
5) Canara Bank
6) UCO Bank
7) United Bank
8) Andhra Bank
9) Allahabad bank
10) Indian Bank
11) Corporation Bank
12) Central bank of India
13) IDBI Bank
14) Dena Bank
You may also open the account at the post offices in the country.

Features of the Sukanya Samriddhi Yojana Account?

a) Who can open the account Sukanya Samriddhi Yojana Account?
The account can be opened in the name of the girl child who is 10 years or below. The girl child above this age is not eligible. Parents or guardians can open the account on behalf of the girl child.
b) What Are the documents that are needed to open Sukanya Samriddhi Yojana Account?
You would need the birth certificate of the child apart from the identity proof of the parent or guardian and their address proof.
c) Tax Benefits
Tax benefits are available under Sec 80C of the Income Tax Act. So, if you invest up to Rs 1.5 lakh each year, you would qualify for a tax rebate.  Interest earned from the investment is tax free as per Union Budget 2015-16 delivered by Finance Minister.
d) Early Withdrawal
Early withdrawal is allowed for marriage of the child or higher education It's important to note that only 50 per cent of the amount is allowed to be withdrawn early.
e) Is the account transferable?
You can move the account from banks to banks and post office to post office anywhere in the country.
f) Are NRIs allowed to invest in the Sukanya Samriddhi Yojana Account?
It's not clear as yet. However, NRIs are not allowed to invest in post office schemes and the chances are bright that they may not be allowed to invest in this scheme as well.
One needs to wait for further clarification on the details.
g) Interest rate
You would earn an interest rate of 9.1 per cent per annum on the scheme
The Sukanya Samriddhi Yojana Account is a decent scheme that offers tax benefit and a good interest rate. It is not a bad idea to invest in the scheme if you have a girl child.
It gives you a great opportunity for long term investment.

Sunday 15 March 2015

Special Term Deposit Scheme Sukanya Samriddhi for Minor Girl Child launched

The Government has launched a new deposit scheme – Sukanya Samriddhi only for minor girl child. This is a small savings scheme which can be opened by the natural (biological) or legal guardian of the girl child aged below 10 years. However, Government has given a buffer time of 1 year if your child turned 10 within a year before the announcement. This means that if the girl child turned 10 anytime between December 2013 and December 2014, you can open such an account in her name.
Deposit account under this scheme can be opened either in public sector bank or post office.

Features of Sukanya Samriddhi Scheme

Opening of Account

Account under Sukanya Samriddhi can be opened and operated either by the minor girl child who has attained the age of 10 years or by guardian of the girl child. Only one account shall be opened in the name of a girl child under these rules after furnishing birth certificate of the girl child along with other documents relating to identity and residence proof of the depositor.
However, as part of the initial offer one year of grace period is being given. Any girl child born between 2 December 2003 and 1 December 2004 can open account up to till 1 December 2015.
Guardian of the girl child will be allowed to open and operate accounts of maximum of two girl children except in the case where depositor either blessed with three girl children in first birth or twin girls in the second birth.

Deposit Rules

The account can be opened with a minimum of Rs.1,000. Thereafter any amount in the multiples of Rs.100 may be deposited with a minimum amount of Rs.1,000 and maximum amount of Rs.1,50,000 in a financial year.
The deposit shall be made by cash, cheque or demand draft. The minimum deposit of Rs.1,000 is to be made each year else a penalty of Rs.50 shall be levied.

Rate of Interest

For the current fiscal year i.e. 2014-15, the deposit will fetch interest at the rate of 9.1% per annum.
For sake of simplicity, method of calculation of interest will be similar to Public Provident Fund (PPF). The rate of interest will be notified each year by the Government which will be compounded yearly.
Sukanya Samriddhi Yojna Interest Calculation
sukanya samriddhi yojana interest calculation

Premature Withdrawal

Premature withdrawal up to 50% is allowed for the purpose of higher education and marriage only when the account holder girl child attains the age of 18 years.

Term Period

The deposit is to be made till the end of 14 years from the year of opening of account. The maturity of the account is 21 years from the date of opening of account or if the girl gets married before completion of such 21 years.

Taxation :- Relief U/s 80C including Interest after mature ( Full Amount)

On the Deposit made:

The amount deposited towards Sukanya Samriddhi Account is deductible under section 80C upto Rs.1.5 lakhs. This limit also includes other deductions under section 80C.

On the Interest

Budget 2015 has made Sukanya Samriddhi Yojana fully tax-free.

Sukanya Samriddhi Account vs Public Provident Fund (PPF)

Both Sukanya Samriddhi Account (SSA) and Public Provident Fund (PPF) aims to seed the savings habit but both schemes have their own pros and cons.

Recurring Deposits vs Sukanya Samriddhi Account


Recurring deposits are rather for short-term period like 6 months to 3 years while sukanya samriddhi yojana is a pretty long-term scheme.