123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

What Are The Tax Benefits Of Sukanya Samriddhi Account?

Profile Picture
By Author: Neha Sharma
Total Articles: 170
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

The Sukanya Samridhhi Scheme is a scheme specially for the girl child. It was flagged off by the Government of India under the ‘Beti Bachao, Beti Padhao’ scheme. This scheme is to ensure that the girl child gets adequate savings of her own by the time she is 21 years of age.

How does the Sukanya Samriddhi Account scheme work?

Under the Sukanya Samriddhi scheme, an account can be opened in the name of the girl child from the time she is born till the time she is 10 years of age. The account will remain operational for 21 years from the date of opening of the account or till the time the girl gets married, whichever is earlier. Any contributions made to the account have to be made for 15 years from the date of opening of the account.
The minimum amount of deposit that has to be made under this scheme is Rs. 250 for the initial deposit. After that, a minimum sum of Rs. 250 and increases in multiples of Rs. 100 has to be deposited every year.

The maximum deposit ceiling is at Rs. 1,50,000.
This account can be opened by the parents of the girl child or any legal guardian. The birth certificate ...
... and other documents of the girl child need to be presented to the bank or post office to open this account. An amount of 50% of the balance lying in the Sukanya Samriddhi Account can be withdrawn when the girl child turns 18 years of age for the purpose of higher education or marriage.

Tax benefits of Sukanya Samriddhi Scheme:

To promote investments in the Sukanya Samriddhi Scheme, the Government has given a tax deduction to any contributions made to this account. This deduction can be availed under Section 80C of the Income Tax Act up to a maximum of Rs. 1,50,000. This deduction gets reduced from your taxable income and saves tax. However, the total deduction under Section 80C is also restricted to Rs. 1,50,000. Investments such as life insurance policy, National Savings Certificate, Senior Citizen Saving Scheme, Public Provident Fund are clubbed together under Section 80C.

Apart from this, any interest earned on this account is exempt under the Income Tax Act. Exempt income means that income is not considered as taxable income for the purpose of filing the Income Tax return. The tax benefits under the Sukanya Samriddhi account scheme are similar to the Public Provident Fund scheme. This makes it a very beneficial scheme to invest funds for a girl child.

Author Bio:- Neha Sharma is a finance student who loves to write in her free time. She haSukanya samriddhi accountSukanya samriddhi account. Through her work, she has explained its tax benefits

Total Views: 336Word Count: 449See All articles From Author

Add Comment

Investing / Finance Articles

1. The Rise Of Investment Banking Companies In Hyderabad’s Financial Scene
Author: Verity knowladge solutions

2. Globe Civil Projects Ipo Gmp 2025 | Price Band ₹67–71, Dates & Gmp ₹0
Author: finowings

3. Investing Ira Gold, California: Gold Ira Investment
Author: Gold and Silver Investment News

4. Expert Accounting Services In South Auckland: Supporting Growth In Manukau And Beyond
Author: WhizBiz

5. A Short Guide To Turn Your Pension Into An Annuity In The Uk
Author: Finance Advisor

6. Globe Civil Projects Ipo: Key Dates, Price Band & Gmp
Author: finowings

7. Why Hyderabad Is The Best City For First-time Homebuyers In 2025
Author: anilsinhaanni

8. Top Crypto Security Trends In 2025: What Every Investor Must Know?
Author: Xiaou Princess

9. Term Loan Vs Line Of Credit: What Hyderabad Businesses Should Know
Author: anilsinhaanni

10. How A Certificate Course In Retail Can Open Doors To High-paying Jobs
Author: sandeep

11. Leveraging Technology: How Virtual Cfos Utilize Tools For Financial Analytics
Author: Dipanjan Das

12. Top Features To Look For In A Stock Trading Platform
Author: Aman Kumar

13. Top Trade Credit Finance Solution Providers: A Substantial Guide For Businesses
Author: Merchant

14. Top Benefits Of Investing In Property Through Your Super In Australia
Author: Rick Lopez

15. The Effect Of Fee Structures On Investment Returns Over The Years
Author: Amit

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: