Sukanya Samriddhi Yojana: In a bid to promote ‘Beti Bachao Betio Padhao’ campaign, the central government launched Sukanya Samriddhi Yojana (SSY) in the year 2015. The SSY scheme aims to build a fund for the girl child with the interest accrued on maturity being exempt from income tax under Section 80C of the Income Tax Act. While declaring interest rates of the small saving schemes for the fourth quarter of the current financial year, the central government has declared the SSY interest rate of 8.2 percent. However, this SSY interest rate is changeable every quarter but one can expect a net return of around 8 percent at the time of maturity. So, if an earning individual starts investing ₹12,500 per month or ₹1.50 lakh per annum in an SSY account after the birth of their girl child, he or she would be able to accumulate around ₹69 lakh when the girl turns 21 years old. Additionally, the investor would be able to claim income tax exemption on ₹1.50 lakh invested in the SSY account in one financial year under Section 80C of the Income Tax Act.
Sukanya Samriddhi Yojana calculator
If an investor starts investing in an SSY account immediately after the birth of its girl child, he or she would be able to contribute for 15 years as one can deposit in one’s Sukanya Samriddhi Yojana account till its gild attains 14 years of age. After the girl becomes 14 years old, one can withdraw 50 percent of the maturity amount when the girl becomes 18 years old. And rest of the maturity amount can be withdrawn when the girl child becomes 21 years old. However, one can take the full withdrawal amount after the girl becomes 21 years old if they don’t find it appropriate to withdraw money from her SSY account after the girl turns 18 years old.
Assuming an 8.2 percent return on one’s money at the time of maturity, if a person invests ₹12,500 per month in 12 installments or ₹1.50 lakh upfront at one time, then the investor will be able to consume one’s ₹1.5 lakh income tax benefit under Section 80C limit in one financial year. If the investor takes full withdrawal when the girl becomes 21 years old, then the SSY maturity amount will be around ₹69,32,648 or ₹69.32 lakh.
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So, if an earning individual starts investing ₹12,500 per month in a Sukanya Samriddhi Yojana account immediately after the birth of one’s girl child, then the girl will be a millionaire at the age of 21.
Income tax benefits
As mentioned above, an investor can claim income tax benefits on up to ₹1.50 lakh invested in an SSY account in the single financial year under Section 80C of the Income Tax Act. The SSY interest earned and SSY maturity amount will be 100 percent tax-exempt as well. So, Sukanya Samriddhi Yojana is an EEE investment instrument.
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Published: 08 Mar 2024, 09:04 AM IST