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.”)
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I have opened SSA in name of my daughter in 2015.In 2016 ,my daughter’s grandfather deposited some amount as gift in SSA. Can i avail tax benefit for same as her grandfather is not availing tax benefit?
Dear Ashutosh ..Only the depositor can contribute to SSA. Do you mean to say the he has given to you and you then have contributed to SSA?
I have opened my daughter account in Post Office, however the experience of submitting the money in post office is too bad. Post office never opens on time, people working there are too bad. Don’t know how to talk.
Moreover the stamps provided by them against the money submitted, cannot be validated if you have submitted the money or not. I wanted to move my daughter account in to any nationalized bank.
Do we have any procedure to get the account moved from Post office to Nationalized Bank?
I really have fear if by the time I need to withdraw the money – these deposits stamps can be validated.
Regards
Ajay Taneja
Dear Ajay,
Procedure to transfer SSA from Post office branch to a Bank.
1 – Kindly visit the PO branch, where the account is being maintained.
2 – You need to submit/surrender the Passbook at the PO. You have to submit KYC documents too.
3 – Inform PO staff that you would like to close the SSA and transfer it to another bank.
4 – Ideally, the PO executive has to close the account and prepare necessary documents so that you can submit them at the bank.
5 – Visit the bank and submit the transfer related documents.
6 – Bank official will check SSA documents and KYC documents.
7 – Bank will issue you a new SSA passbook with Carried forward balance.
8 – You can start contributing to SSA through the bank.
Parvati.
Sir,
We have opened the Sukanya Samruddi Account of my daudgter Pooja
Now Sukanya Samruddi Account is in my husband’s name (Irayya A Hiremath is given as gaurdian, But I am Paying the installment by cash in post office. can I (Parvati.Irayya.Hiremath wife of Irayya A Hiremath) claim tax exemption?
Then declare me which documents I have to submit in my company to claim tax exemption? pl reply.
Dear Parvati,
If your husband is the depositor (as given in the SSA) then he can only claim the tax exemption.
You may get the name changed to yours.
Read: Income tax declaration & investment proofs.
Hi
I am contributing in SSA , what proof I have to show for income tax dept.
Dear Naga..Copy of SSA/c passbook.
Read : Income Tax Declaration & List of Investment Proofs
Hi, I am the primary depositor for my daughter’s SSY account. My questions is can my father claim the tax benefit if he does some deposit into the SSY account?
Dear Sridhar..I think it is not acceptable.
Who will file return related to SSY annual interest? Parent or child and on which clause of ITR?
Dear Mr.Jain..Interest income earned on SSA is tax exempted.
In case of minor children, any income earned by the recipient on it shall be clubbed with the income of donor (parent). This is a general rule.
Sir,
in sukanya yojana if husband’s name is given as gaurdian,can wife claim tax exemption? pl reply.
Dear Priya..If wife is making the contributions then she can claim tax exemptions.
is it mly/qly/hly/yrly compounding or is it merely simple interest
Dear Archana..it is annually compounding.
I have two daughters. I have opened ssa for each.
1. Whether my husband can also open another ssa and claim tax rebate
2. Whether 1.5L can be saved for each ?
Dear Archana,
Only one A/c per a girl child is allowed.