I have published an article on Sukanya Samriddhi Yojana (Sukanya Samriddhi Account) a few weeks back. There is a lot of confusion regarding the tax benefits that are applicable for the contributions / deposits made under SSA scheme. I have been receiving a lot of queries about the taxation of contributions, interest amount and maturity (withdrawal) amount.
Budget 2015 has put an end to all the confusion. The finance minister has made it very clear that all the payments made under Sukanya Samriddhi Yojana are fully tax exempted.
Sukanya Samriddhi Yojana (SSY) – Tax category (rule)
The contributions or the deposits or the investments that you make (monthly or yearly or in mode) under Sukanya Savings Deposit Scheme for girl child will be eligible for tax deduction. The maximum tax exemption is Rs 1.5 Lakh p.a. under Section 80C.
All payments to the beneficiaries including interest payment on deposit will also be fully exempted from the income tax. With this, it is now clear that investments made in Sukanya Samriddhi Account fall under Exempt – Exempt – Exempt tax category. (Like the investments made in PPF (Public Provident Fund)
For more details on;
- How to open Sukanya account?
- What is the interest rate?
- How is interest rate calculated?
- What is the approximate maturity amount?
Kindly read my article on “Sukanya Samriddhi Account – Features, Review & Benefits.”
For details on comparison of Sukanya Samriddhi Yojana with Public Provident Fund, click here..
Latest News – Reserve Banks of India (RBI) has issued a notification on 11th March 2015, authorizing 28 banks to open Sukanya Samriddhi Accounts. These banks include SBI, ICICI Bank, Bank of Baroda, Punjab National Bank (PNB), Allahabad Bank, Canara Bank, Corporation Bank, Andhra Bank etc., For complete list, kindly read my article – “Sukanya Samriddhi Account – Authorized Banks list for Account opening – Download Sukanya Samriddhi Account Opening form.”)