With an aim to improve the gender inequality, Government of India has done a great initiation by launching "Sukanya Samriddhi Yojana" as an integral part of "Beti Bachao Beti Padhao" campaign.
I have been getting tremendous questions on the various aspects of the Sukanya Samriddhi scheme, so I thought of scribing down all the questions that were asked from me with few questions from my side which I think needed to be answered.
Interest Rate for 2015-16 has been hiked to 9.2% per annum from 9.10% per annum.
FAQs on Sukanya Samriddhi Account
1. Age Limit:
The account under Sukanya Samriddhi Yojana can be open till the girl child reaches the age of 10 years. Once she crosses the age of 10 years, she shall become ineligible for opening account under this scheme.
2. Buffer Time of 1 year
The Age limit is restricted to 10 years but Government has stipulated a buffer time of 1 year. This means the girl child who has attained the age of 10 years 1 year prior to the announcement i.e. the girl child born between 2 December 2003 and 1 December 2004 can open sukanya samridhhi account up to till 1 December 2015.
3. Authorized Banks and Post Offices
Sukanya Samriddhi Account is almost a replica of Provident Fund Account, so the authorized banks may also be the same as of PPF scheme. Although the list of authorized banks have not been published but in the government notification, banks includes all the commercial banks. Thus we can assume that the banks authorized to open account under PPF scheme is also eligible to open account under Sukanya Samriddhi Yojana.
So the lists of bank which may be authorized to open account are:
- State Bank of India
- State Bank of Patiala
- State Bank of Bikaner & Jaipur
- State Bank of Travancore
- State Bank of Hyderabad
- State Bank of Mysore
- Andhra Bank
- Allahabad Bank
- Bank of Baroda
- Bank of India
- Punjab & Sind Bank
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Corporation Bank
- Dena Bank
- Indian Bank
- Indian Overseas Bank
- Punjab National Bank
- Syndicate Bank
- UCO Bank
- Oriental Bank of Commerce
- Union Bank of India
- United Bank of India
- Vijaya Bank
- Axis Bank Ltd.
- ICICI Bank Ltd.
- IDBI Bank Ltd.
Please note that HDFC Bank is not authorized to open PPF Account but let's see whether it gets authorization to open sukanya samriddhi account or not? Also please visit the banks to get more information.
Apart from the above banks, all the post offices are authorized to open account under Sukanya Samriddhi Yojana.
4. Taxation on Sukanya Samriddi Scheme
At present the contribution made towards the SSA is included in the list of section 80C. The ceiling limit of deduction is Rs.1.50 lakhs. This limit also takes account of all the existing investments such as PPF, bank 5 years FD, LIC etc.
Sukanya Samriddhi Scheme has been put into EEE category in Budget 2015 i.e. Sukanya Samriddhi Account Scheme has become fully tax-free.
As far as the interest is concerned, the same will be taxable in the hands of the guardian and taxable as per the slab rate he falls in. Only a deduction up to Rs.1,500 is available from the interest earned u/s 64.
There is no official statement on the redemption amount as whether the same will be tax-free or taxable but by looking at the purpose behind the scheme i.e. funding the marriage of girl, it can be pre-assumed that the sukanya samriddhi yojana may get EEE tax treatment.
5. Non-Resident Indians (NRI)
Sukanya Samridhi scheme is a small savings scheme and governed by Post Office Savings Account Rules, 1981. As per RBI guidelines, a Non-Resident Indian (NRI) may not be eligible to invest in Small Savings schemes but still official remarks are waiting on this.
6. Documents to open account
To open this account following documents are required to be submitted.
- Birth Certificate of Girl Child
- Identity proof of the depositor i.e. parent or legal guardian
- Address proof of the depositor i.e. parent or legal guardian
In case Birth Certificate of girl child is not available than birth certificate from the school headmaster or from the hospital where girl child was born is also valid.
7. Death of Girl Child or the Depositor?
In case of death of the girl child i.e. the account holder;
- The accounts will get closed; and
- The balance i.e. the amount deposited including accrued interest will be refundable to the guardian.
In case of death of the depositor and no one can further deposit any amount, then there may be two instances:
- The amount including interest will be refunded to the family of the girl child; or
- The balance may not be refunded and kept in the account till the maturity without the need of fresh contribution. Further, the balance kept in the account may keep earning interest.
Although, there are no official words on the above conditions, so let's hope that Budget 2015 will clear all the doubts.
8. Conversion of Existing Account
Unfortunately, conversion of existing savings account to sukanya samriddhi account is not permissible. You need to open a new account.
9. Premature Withdrawal
Premature withdrawal up to 50% is allowed for girl's higher education and marriage after she attains 18 years of age.
The account can also be closed before the stipulated time period if it is causing any hardship on the depositor.
10. Maturity Amount
11. Is this scheme available throughout India?
Yes, Sukanya Samridhhi Yojana embraces all the states of India and account can be open anywhere in India.
12. Is Account Transferable?
The sukanya samriddhi account is freely transferable anywhere in India if the girl moves to a place other than the city or locality where the account is opened.
13. Are commission agents or any intermediary allowed?
No, commission agents may not be allowed under Sukanya Samridhhi scheme.
14. PPF or Sukanya Samriddhi Account?
15. Sukanya Samriddhi Account or Recurring Deposits?
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