The Benefits of the Sukanya Samriddhi Yojana
- Interest at a high level
With Sukanya Samriddhi Accounts, girls are offered financial security at a higher rate than with other Savings Plans. Interest is compounded annually on your investments and declared by the government each year. The power of compounding will allow you to increase the value of your Sukanya Samriddhi Yojana account by a large margin by maturity.
- Savings on taxes that are significant
As a result of Section 80C of the Income Tax Act 1961, you are eligible for tax deductions on your contributions to the Sukanya Samriddhi Yojana for your daughter. As a result, you are eligible for tax deductions up to Rs 1.5 lakh if you invest in the scheme. Furthermore, the tax-saving benefits apply to the interest earned and the amount received upon maturity. In addition to being classified as an exempt-exempt-exempt (EEE) investment scheme, the Sukanya Samriddhi Yojana is also under the authority of the Department of Revenue (DOR).
- Maturity Benefits Guaranteed
Upon maturity, the balance of your sukanya samriddhi yojana plan account, including the accumulated interest, will be paid directly to your daughter (or policyholder). As a result, the scheme enables your daughter to become financially independent once she is mature enough to make her own decisions in life. The Sukanya Samriddhi Yojana offers an additional benefit of compounding interest on your accumulated savings even after maturity until the account is closed by the account holder.
Sukanya Samriddhi Yojana’s Tax Benefits
In case you have a Sukanya Samriddhi Yojana account, you are eligible to receive tax benefits on your deposits.
As SSY accounts are considered investments, they are eligible for deductions under section 80C of the Income Tax Act, up to Rs 1,50,000.
- b) Deposit account compound interest is also tax-free.
- c) Withdrawals are tax-free. Therefore, you can withdraw the amount tax-free once your account matures.
Thus, Sukanya Samriddhi Yojana is an Exempt-Exempt-Exempt instrument due to all these tax benefits.
When should Sukanya Samriddhi Yojana documents be submitted?
Sukanya Samriddhi Accounts must be opened in person by visiting your nearest bank or post office to submit some documents. As of now, these documents can’t be submitted online, so you will need to visit your bank or post office.
- You will need the following documents:
- Dedicated to girls
- A copy of the birth certificate
- A copy of the SSA-1 form is required
- Designed for parents
- Identity proof such as a PAN card or AADHAR card is required
- Proof of address: Driver’s license, telephone bill, electricity bill
- You may also be required to provide proof of other documents by the relevant bank, even if only these documents are required.
Sukanya Samriddhi Yojana: How to Pay?
In order to make the payment process more convenient for you, the SSY scheme allows online deposits so that you don’t need to visit the place. Here’s how it works.
- Download the IPPB (Indian Posts Payments Bank) app from the Indian Post’s website.
- The first step is to transfer money from your current bank account to your IPPB account
- Find the SSY account link in the ‘DOP Product’ section.
- Then enter your DOP customer ID along with your SSY account number
- Your SSY account will be credited with the amount you select and the duration of the deposit
- Wait for IPPB’s confirmation that the transfer was successful
- You have now successfully made a payment and set up a payment routine once you receive confirmation