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7 Benefits of Sukanya Samriddhi Account

Sukanya Samriddhi Account
Sukanya Samriddhi Account

Sukanya Samriddhi Account is another welcome step from Govt of India. Honorable Prime Minister of India, Sh. Narendra Modi Ji launched Sukanya Samriddhi Account “A Small Savings Scheme” on 22nd January 2015. It is part of “Beti Bachao – Beti Padhao” initiative of Government of India (GOI) also known as BBB. Despite sincere efforts from Govt of India, Sex ratio in India is still a grave concern and it shows the backwardness of the country. It’s commendable that Govt of India is taking steps to change the mindset of people towards Girl Child. Recently i saw few TV ads of GOI with a message that if we have to make India a Safer Place for Women then we have to fix the gender imbalance. A deep social message delivered in the most simplistic way.

Sukanya Samriddhi Account is a step forward in this direction. I was quite disheartened when i observed that when so-called “Financial Planners” flooded the internet with a comparison of Sukanya Samriddhi Account with other financial instruments. Most favorite one is PPF account and everyone is taking the lead to comparing Sukanya Samriddhi Account with PPF account along with beautiful infographics & loads of financial data. My dear friends forgot to check the objective behind Beti Bachao – Beti Padhao initiative and social message attached to it. The objective behind this initiative is to address the Gender imbalance and create a positive environment in favor of Girl Child.

For Gazette Notification of Sukanya Samriddhi Account and complete scheme details please CLICK HERE

Sukanya Samriddhi Account – Objective

In India, a Girl child is considered as a Financial Burden especially in North India. Being a father of a girl child i can say this with 100% conviction. It may be because of dowry practice or outdated social norms. People show sympathy towards the father of a Girl Child. Through Sukanya Samriddhi Account, Govt is trying to give a social message that Girl Child is not a financial burden if parents of a Girl child secure their future through proper financial planning. It is quite evident from the scheme document. I will highlight these points in next section. In my opinion, be it a Girl Child or a Boy its the responsibility of every parent to secure future of their child financially. The unfortunate part is that to teach this basic lesson, a separate scheme for Girl Child is required. Sukanya Samriddhi Account cannot be considered as an investment option but a savings scheme to secure the future of Girl child. It is not right to compare Sukanya Samriddhi Account with other investment options / savings scheme. There is a purpose behind this scheme and it is being launched with an objective.

Sukanya Samriddhi Account – Benefits

As i mentioned that it is not right to compare Sukanya Samriddhi Account with any other scheme. I am highlighting 7 standalone benefits of Sukanya Samriddhi Account both financial and non-financial for the benefit of my readers

1. Highest Interest Rate among all Small Savings Schemes offered by Govt of India

Sukanya Samriddhi Account will offer an interest rate of 9.1% for current financial year i.e. FY 2014-15. It is highest among all Small Savings Schemes. The rate of interest for this scheme will be market linked. The rate of interest will be 75 bps or 0.75% more than the average 10-year G-Sec yield for the previous year. The Interest Rate applicable for the Financial Year will be declared every year by the Govt of India. Interest will be compounded yearly i.e. will be credited on a yearly basis. It will be accrued on a monthly basis on the lowest balance between 5th and last day of the month.

2. Tax Savings

In order to encourage people to open Sukanya Samriddhi Account, Govt has exempted contribution to this account u/s 80C of the Income Tax Act, 1961. In all probability this scheme will be EEE i.e. exemption will also be available on interest income and at the time of withdrawal. It is under consideration of Department of Revenue (DOR). DOR will soon bring a legislative amendment to this effect. It will be a most tax efficient scheme.

3. Lock-in Period

 In my opinion, this is the BEST Feature of this scheme. The maturity of account is 21 years from the date of opening of the account or Marriage of the Girl Child, Whichever is earlier. For Marriage, Girl should be of 18 years at the time of marriage. The operation of account is not permitted beyond the date of marriage.

One Premature withdrawal is allowed on attaining the age of 18 years by girl child only if funds are required for Higher Education. Premature withdrawal is restricted to 50% of the balance at the end of preceding financial year. The deposits in the account can be made till completion of 14 years from the date of opening of the account through maturity is 21 years from the date of opening of the account.

4. Purpose of Sukanya Samriddhi Account

As i mentioned earlier, it is quite evident that Sukanya Samriddhi Account is launched with the sole objective of financial planning for the marriage of Girl Child. Social Message is that Marriage or Education of a Girl Child is not a financial burden if parents plan well in advance.

With lock-in period as i explained in point 3, the parents cannot withdraw the money for any other purpose except marriage or for higher education of Girl Child. Because of this reason i mentioned in the beginning of the post that Sukanya Samriddhi Account cannot be compared with any other financial instrument or small savings scheme. My friends who are comparing this account with PPF forgot that in PPF, partial withdrawals are allowed after 6 years. Moreover, PPF is not linked to any end purpose but just a tax saving instrument. They fail to understand the objective behind this scheme.

5. Maturity Proceeds to be Paid to Girl Child

On maturity of Sukanya Samriddhi Account, the account balance along with accrued interest will be paid directly to the account holder i.e. Girl Child. It gives financial independence to Girl child which is currently missing in India.

6. Interest to be paid even after Maturity

Unlike other financial schemes where interest is not paid on maturity of the deposit / investment scheme. A unique feature of Sukanya Samriddhi Account is that even after maturity if the account is not closed by the account holder, Interest shall be payable in the account till final closure of the account.

7. Flexibility to operate Sukanya Samriddhi Account

Based on past experience, Government of India has given a lot of flexibility in terms of account operations. I am listing down few of them

(a) The account can be opened with an initial deposit of Rs 1000 and thereafter any amount in multiple of Rs 100 can be deposited subject to the max limit of 1.5 lakh during the financial year. Every FY, a minimum sum of Rs 1000 should be deposited to keep account operative. In the case of two daughters i.e. two Sukanya Samriddhi Accounts, the cumulative contribution cannot exceed 1.5 Lakh during Financial Year.

(b) On attaining age of 10 years, a girl child can operate her account

(c) Account can be closed if it is proved that account is causing undue hardship to the account holder

(d) Account can be transferred anywhere in India

Imp Points:

1. The scheme was notified on 2nd Dec 2014 therefore as a one-time grace any girl child who attained the age of 10 years, one year prior to the commencement of this scheme, is eligible to open the SSA. What is implies is that Girl Child born between 2nd Dec 2003 and 1st Dec 2004 are eligible to open the account.

2.  This scheme is not available for NRI’s as it is small savings scheme.

3. Under this scheme, you can make a deposit for 14 years from the date of account opening. The account will mature only after 21 years. From 15th to 21st year of account opening, you cannot make any deposit but will only receive interest on the deposits under Sukanya Samriddhi Account. Another condition of maturity is marriage. For example, if your daughter’s age is 8 years at the time of opening Sukanya Samriddhi Account. Now you can make deposits only till she turns 22 years. The account will mature after 21 years i.e. when she turns 29 years. In case, she gets married between 18 years to 29 years of age then account will mature automatically at the time of marriage.

4. If the money is not withdrawn from SSA after the maturity then also you will continue to receive the interest till the account is closed voluntarily.

5. Variable contribution between Rs 1000 and Rs 1.5 Lakh is allowed. What it implies is that you can deposit any amount of your choice in Sukanya Samriddhi Account during FY. For example, the 1st year you deposited Rs 1000 to open the account. Now 2nd year you can deposit Rs 10,000, 3rd year Rs 90,000 and so forth. The contribution is not fixed and may vary.

6. To download Sukanya Samriddhi Account Opening Form CLICK HERE

7. It is not possible to change the guardian after the account is opened. It is only allowed under special circumstances like death of an existing guardian.

8. The tax deduction can be claimed only by the Guardian of the child as provided at the time of opening of account even though the contribution is made by another parent/relative. For example, if my wife is the guardian of my child for sukanya samriddhi account. Assuming, i am making a contribution to my child’s SSA account. In this case, i cannot claim tax deduction even though investment is from my end. Only my wife can claim a tax deduction.

 I hope you liked the post and will open Sukanya Samriddhi Account for your Girl Child.

Beti Bachao – Beti Padhao

Update April 05, 2015:

1. EEE Taxation Status for Sukanya Samriddhi Account: As i mentioned and anticipated in my post, Sukanya Samriddhi Scheme is accorded EEE Tax status in Budget 2015. What it means is that Tax Exemption is now available at all 3 stages i.e. Deposit, Growth, and Withdrawal under section 80C. In short, Scheme is 100% Tax Free. 

2. Interest Rate of 9.2% for Financial Year 2015-16: I would like to thank Govt of India for declaring interest rate of 9.2% for FY 2015-16 for Sukanya Samriddhi Account. It shows the commitment of Govt towards the scheme. Even though interest rates are declining but Govt declared interest rate higher than FY 2014-15 for FY 2015-16.  Interest Rate is variable. For next Financial Year, Interest Rate will be declared in April 2016. 

3. Banks Authorized to open SSA: On Mar 11, 2015, RBI authorized following 28 banks to open SSA. Now there is a confusion on which branches are authorized to open SSA. One of my reader who is a senior banker confirmed that Branches of following banks which are authorized to open PPF account are authorized to open Sukanya Samriddhi Account.

State Bank of India
State Bank of Patiala
State Bank of Bikaner & Jaipur
State Bank of Travancore
State Bank of Hyderabad
State Bank of Mysore
Andhra Bank
Allahabad Bank
Bank of Baroda
Bank of India
Punjab & Sind Bank
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Punjab National Bank
Syndicate Bank
UCO Bank
Oriental Bank of Commerce
Union Bank of India
United Bank of India
Vijaya Bank
Axis Bank Ltd.
ICICI Bank Ltd.
IDBI Bank Ltd.

Update July 05, 2016:

I keep receiving queries on whether an NRI or OCI can invest in Sukanya Samriddhi Account. Just to clarify that NRI or OCI cannot open or invest in Sukanya Samriddhi Account. The account can be opened only in the name of a Girl Child who is Resident Indian Citizen.

In future, if the residential status of a girl child changes from resident Indian to NRI then NO INTEREST will be paid from the date of change of residential status. In this case, the Sukanya Samriddhi Account will be considered CLOSED. The parent or guardian should inform the bank or post office regarding the change in residential status within one month. Any interest credited after the change of residential status will be reversed, the account will be closed and the fund value will be refunded to the account holder.

Image Courtesy: Government of India 

Copyright © Nitin Bhatia. All Rights Reserved.

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sanjay kumar
sanjay kumar
9 years ago

Is that available throughout India? I initially heard that its applicable to selected cities like Haryana where the sex difference is quite high? Am from bangalore

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  sanjay kumar

Yes, you can open Sukanya Samriddhi Account in any Post Office in India handling savings account or any branch of commercial bank authorized by Govt of India (You need to check which branches are authorized).

sanjay kumar
sanjay kumar
9 years ago
Reply to  Nitin Bhatia

Thanks a lot for information and clarification!!

Arun
Arun
9 years ago

Awesome post. I keep watching your website for this type of information which really adds value to my limited knowledge. Could you please let me know if we can open this account now (in Bangalore). What all the documents we should be carrying.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Arun

You can open Sukanya Samriddhi Account in any Post Office in India handling savings account or any branch of commercial bank authorized by Govt of India (You need to check which branches are authorized).

Documents required are
1. Birth Certificate of Girl Child
2. Identity proof of the depositor i.e. parent or legal guardian
3. Address proof of the depositor i.e. parent or legal guardian

Arun
Arun
9 years ago
Reply to  Nitin Bhatia

Thanks!!!

Arun
Arun
9 years ago
Reply to  Arun

Nitin, just checked in a post office and they have not received this information yet. Not sure thats the case only with PO or its same with all POs in Bangalore.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Arun

I checked and found that some post offices like Whitefield, HAL, OMR etc have the forms but employees are not completely aware. As the scheme is recently launched so logistics will take time. You may check after couple of weeks.

Sudheer
Sudheer
9 years ago
Reply to  Nitin Bhatia

Today I have checked in Allahbad Bank J.P Nagar & SBI BTM branch but still they have not yet received any GO copy in those branches. But they are aware of the newly lauched scheme and waiting for the new product details. As Nitin told it may take couple of weeks to get in to the action.
Thanks
Sudheer

RAJ
RAJ
9 years ago

this scheme is for selected part of India or all India ?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  RAJ

You can open this account anywhere in India.

Kaushal Singh
Kaushal Singh
9 years ago

Your post and view is really appreciable.
Can we convert existing minor account in Girl child name into sukanya samriddhi account.?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Kaushal Singh

Unfortunately you cannot convert existing minor account to sukanya samriddhi account. A separate account should be opened.

Kapoor
Kapoor
9 years ago

Dear Nitin, Where can we open this account, any idea?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Kapoor

You can open Sukanya Samriddhi Account in any Post Office in India with savings account facility or any branch of commercial bank authorized by Govt of India (You need to check which branches are authorized)

vikramjit
vikramjit
9 years ago
Reply to  Nitin Bhatia

Sir, please clarify: depositing the money is up to 14 years of age or 14 years from the date of opening the account. What we have read all the way is “till the age of 14 years”. E.g. If she is 7 year old then we will deposit till she is 14 years?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  vikramjit

As per notification from Govt of India, Deposits can be made till completion of 14 years from the date of opening of account.

b james
b james
9 years ago

hello, I have 2 girls who have completed 10 yrs and 15 yrs. Can I open accounts for both of them ? I am confused where it is said age limit is 10 yrs. pls advise. thanks.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  b james

You can open Sukanya Samriddhi Account for your daughter who has completed 10 years as there is a provision that if the girl child has completed 10 years, one year prior to the commencements of rules regarding Sukanya Samriddhi Account i.e. 2nd Dec, 2014 is eligible to open account. In short, if your daughter has turned 10 years on or after 3rd Dec, 2013 then you can open this account in her name.

satish basankar
satish basankar
9 years ago
Reply to  Nitin Bhatia

Dear Sir,
My daughter will complete 10 years by 17/02/2015, I have check with SBI & Vijaya Bank in Mumbai but do not have any instruction for open such account. In such circumstances if my daughter completed her 10 years, can I open her account after 17/2/2014.

Nitin Bhatia
Nitin Bhatia
9 years ago

You can open Sukanya Samriddhi Account. As i mentioned that there is a provision that account can be opened if the girl child completed 10 years, one year prior to the commencements of rules regarding then account can be opened.

Nabha Garjana
Nabha Garjana
9 years ago
Reply to  Nitin Bhatia

i think there is a confusion , the account can be opened only prior to the girl child attains 10 years of Age.you must correct it.
http://www.indiapost.gov.in/SukanyaSamriddhi.aspx

Jini
Jini
9 years ago

Hi
The interest from this scheme is taxable or non taxable-i found in different medias that interest is taxable.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Jini

I have answered this in Point no 2 of the post that DOR (Department of Revenue) will soon bring legislative amendment to make it EEE i.e. interest will be non-taxable. As of now it is taxable.

Gateway
Gateway
9 years ago

Hello Nitin Sir, Thank you for this beautiful article. Special thanks to uphold and highlight the social message about firl child which is very much needed

Vishal Krishna
Vishal Krishna
9 years ago

If we have PPF for a child, can we open this also?
By when will we come to know about EEE?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Vishal Krishna

You can open Sukanya Samriddhi Account even if PPF is their in child’s name. Reg EEE, it is anticipated that by Mar’15 there will be clarity on the same.

Nilesh Purohit
Nilesh Purohit
9 years ago

Hello Nitinji, My daughter is 3 yrs old now and staying with me in USA since last 8 months. 1. Can i open a SSA account from here. 2.Can you tell me the banks associated with this account.

Thanks

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Nilesh Purohit

Sukanya Samriddhi Account is small savings scheme (SSS) and as per RBI guidelines NRI’s may not be able to invest in SSS. Another round of clarification is expected on this scheme from govt. I suggest you to wait for further clarity.

Nitin Bhatia
Nitin Bhatia
9 years ago

There is no confusion. Please check point 5 on link shared by you. Account can be opened for girl child born between 02/12/2003 and 01/12/2014. I also mentioned same thing that girl child turned 10 years on or after 2nd Dec, 2013 is eligible to open the Sukanya Samriddhi Account i.e. Girl child who is 11 years old now.

Information shared by me is correct.

Nabha Garjana
Nabha Garjana
9 years ago
Reply to  Nitin Bhatia

here is the point 5 from the GOVT page. there is an understanding issue. it clearly says that Account can be opened “UP TO” age of 10 Years

the date are mentioned as an example. stating that for initial operations, 1 year grace will be provided so making it as 11, it must be noted that this grace of 1 year may not be available next year.
The dates mentioned are just an example to make one understand that only upto 10 years old girl child can have the account opened and 1 year grace for initial operations making it 11.

Verbatim
“Account can be opened up to age of 10 years only from the date of birth. For initial
operations of Scheme, one year grace has been given. With the grace, Girl child
who is born between 2.12.2003 &1.12.2004 can open account up to1.12.2015.”

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Nabha Garjana

My sincere apologies but i could not understand what point you are trying to make. I never mentioned that grace of 1 year is available forever. I mentioned that grace is available only one year prior to the commencements of rules regarding Sukanya Samriddhi Account i.e. Girl child turning 10 years one year prior to 2nd Dec, 2014 is eligible to open account.

Nabha Garjana
Nabha Garjana
9 years ago
Reply to  Nitin Bhatia

sir there is no need for any apology. the only point is the account can be opened for less than 10 years not more than 10 years as you mentioned.

suneel
suneel
9 years ago

My Question

1)
Can we open SSA in SBI bank ?

2)
Is there any direct salary deduction/auto pay options
are available, As difficult to pay monthly by visiting Post office/ Bank.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  suneel

1. You can open SSA in SBI but only in authorized branches.
2. As per notification from Govt of India, only Cash, Cheque and DD are acceptable modes of deposit. A bank may independently provide ECS facility.

Himanshu
Himanshu
9 years ago

can we deposit money till the child reaches 14 years of age or 14 years from the date of opening of account

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Himanshu

Deposits can be made till completion of 14 years from the date of opening the account.

tahir
tahir
9 years ago

Dear Nitin suppose If i will deposit 1000 Per MOnth for 14 Years, then what will be returns after 21 years of chield ? whether i have to pay in between 14 to 21 or not

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  tahir

As the interest rate is variable and will be declared every year therefore exact returns cannot be calculated. You can pay till 14 years from the date of opening account. Date of maturity is 21 years or date of marriage of girl child, whichever is earlier.

Sanskruti
Sanskruti
9 years ago

Hello NItin ji thanks for the precious information. I have a small question. If I will deposit Rs. 1000/- a year for 14 years what will be the refund amount after 21 years.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Sanskruti

The interest payout under Sukanya Samriddhi Account is not fixed as it is linked to 10 year G-Sec yield therefore we cannot predict how much amount will be accumulated. Similar to PPF, interest rate will be declared every year by the Govt.

Kunal
Kunal
9 years ago

hi! can i get account opening/application form online or can i fill the form online..?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Kunal

You can get account opening form from post office or authorized branch of the bank, It is not available online.

suresh kumar
suresh kumar
9 years ago

really nice explanation. Thanks a lot. i will open acc for my daughter immediately.

Amar Govenkar
Amar Govenkar
9 years ago

sir ji can we get account opening form in online, if i deposit 500 per month for 14 yrs then what will be the refund amount after 21 years.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Amar Govenkar

Currently account opening form is not available online, you may collect it from Post office or branch of the bank authorized to open SSA.

As i mentioned in my post that Interest offered under Sukanya Samriddhi Account is not fixed. It will change every year as it will be 75 bps or 0.75% more than average 10 year G-Sec yield for the previous year (Which is variable). Secondly, by default interest will be compounded yearly and there is a monthly interest option also. Interest payout option will depend which option you select.

Ramesh
Ramesh
9 years ago

Thanks Nitinji for sharing very valuable info on SSA.

Satish
Satish
9 years ago

Hi Nitin,

Thanks for the above useful information. I need to clarify 2 things here.

1. May I get calculation chart if I pay 12000 per year(1000/month)? We have baby girl (DOB: 28/12/2014)
2. How much we will get at end of maturity if we with withdraw 50% of amount at the age of 18?

Thanks for your help.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Satish

As the interest rate is not fixed and linked to G-Sec yield i.e. it will declared every year therefore we cannot predict maturity amount.

Sandeep
Sandeep
9 years ago

Hi please provide me the chart if i paid 1000 or more per month how much will get at the end of 21 years my child age is 7 years now

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Sandeep

As interest rate is not fixed and linked G-Sec yield therefore we cannot predict maturity amount.

Alok
Alok
9 years ago

Dear Nitin ji,
Suppose the person who is making contribution to the fund dies in between what will happen to the fund and what coverage girl will have.
Regards
Alok

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Alok

Account is in the name of a Girl child therefore even if the person who is contributing to the account dies, the account will remain operative. It does not provide any insurance coverage but girl child can withdraw the money as per terms and conditions of the account.

Naina Rai
Naina Rai
9 years ago

Hello am a Single Mother as my husband expired and I have already paid SSA in my daughter’s name who is 10 years old…What if I die???

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Naina Rai

As your daughter is 10 year old therefore she can operate her account on her own. In case of death of guardian or parent, account will remain operative and girl child can withdraw the money as per terms and conditions of the account.

deepali khakurdikar
deepali khakurdikar
9 years ago

Nitin Ji i have 2 daughter first is 9 years & second is 2.5 years old so that, we open the 2 a/c? or what?

Nitin Bhatia
Nitin Bhatia
9 years ago

You can open 2 accounts i.e. 1 each in your daughter’s name.

prashant
prashant
9 years ago

sir is there any risk cover as we see in LIC..

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  prashant

There is no risk cover attached with SSA.

Nitin Bhatia
Nitin Bhatia
9 years ago

Account will be closed at the time of marriage provided girl is of 18 years at the time of marriage.

venkat
venkat
9 years ago
Reply to  Nitin Bhatia

It means no need to deposit until 14 years from date of opening account?account holder can deposit 100,200……in successive deposit after opening with 1000?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  venkat

You have to deposit min 1000 Rs every FY to keep account operative.

Babasaheb Gobade
Babasaheb Gobade
9 years ago

air ia m not getting any correct contact no. for getting detail information about sukanya samriddhi account… plz guide me.. is this scheme is for alll over india…can u suggest me to whom should approach first….

Nitin Bhatia
Nitin Bhatia
9 years ago

This scheme is applicable PAN india. You may visit nearest post office to open the account.

shilpa
shilpa
9 years ago

Hi sir
Its really good one.
I just have one query. unfortunately if something happens to girl child what will happen to the account??

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  shilpa

In any such unfortunate event, Account will be closed on production of death certificate. The account proceeds along with interest will be paid to the guardian of account holder.

sonia
sonia
9 years ago

Sir it seems to bea very good plan….can I link my salary account in a pvt bank for direct debit of montly instalment

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  sonia

Currently ECS is not notified as acceptable mode of deposit. May be banks may provide this facility in future.

Suresh Nakka
Suresh Nakka
9 years ago

Thanks Nitin ji for the very useful info..
Just wanted to know SSA is giving 9.1% rate of interest (which is not fixed for future) and interest in taxable.
PPF is giving 8.7% and interest in not taxable.
which one is best and you’ll suggest.

and also can you please share branch of the bank authorized to open SSA not getting details anywhere.

Thanks,
Suresh.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Suresh Nakka

Objective of PPF and SSA are different. PPF investment is for retirement planning whereas SSA is to financially secure future of Girl Gild. Depending on your requirement, you may decide.

As i mentioned in my other comments that in all probability SSA will get same tax treatment as PPF. Department of Revenue will shortly being legislative amendment in this regard.

Authorized Branch details can be obtained from call centre helpline of bank.

amicon
amicon
9 years ago
Reply to  Nitin Bhatia

Dear Nitin,

I just read your article that some people are comparing PPF with SSA which according to you is not correct because of the social objective etc. etc. and that this money will go to the girl child. While I have not be able to see the authorised bank branches so far..
This money is not an investment like PPF.. well said… this money will be given to the girl child when she turns 18 or gets married. Just a thought…if a girl wants to get married against the wishes of the family and knows that upon her marriage she will get all this money which her parents saved all their life…so the question….

Plus yes, if you get a list of authorised bank branches without which what is the purpose of this 9.1% announcement

amicon
amicon
9 years ago
Reply to  amicon

In think if the parents who make the contribution to this account will have no control over the money upon maturity, this to my mind is a big loophole….

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  amicon

Thats correct

omprakash kalyani
omprakash kalyani
9 years ago

pls..give the full information about sukanya samriddhi account .. on my mail or my cell no..9859055240 ,

Nitin Bhatia
Nitin Bhatia
9 years ago

Please check following link for Govt notification

http://www.nsiindia.gov.in/writereaddata/FileUploads/SSA_GZT.pdf

narendra kumar
narendra kumar
9 years ago

Sir meri gudiya 6 year ki h. 21 year latter gudiya 27 year ki ho jayegi.or agar uski marriage 27 year se pehle ho jati h .to kya hum payment le sakte h ? Or kitna ?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  narendra kumar

The account will close at the time of marriage of girl child and money can be withdrawn at the time of marriage.

Santosh
Santosh
9 years ago
Reply to  Nitin Bhatia

If marriage before maturity of Accounts, in this case can we released amount?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Santosh

Account will be closed at the time of marriage provided girl is of 18 years at the time of marriage.

rakheemayuri@
rakheemayuri@
9 years ago

Can the account be opened online? From another country?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  rakheemayuri@

Currently online facility is not available and as per RBI guidelines NRI’s may not be able to invest in SSS as it is classified as small savings scheme.

ss
ss
9 years ago
Reply to  Nitin Bhatia

Is there a chance in future to have the Sukanya Samriddhi account opened online?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  ss

I don’t think so as KYC compliance is required and birth certificate of girl child is required.

Mahesh
Mahesh
9 years ago

Hi Nitin,

Thanks, i have the one query on this.

I understand from the chain of conversation that only girl child can withdraw the amount on maturity and only for marriage.

1. In this case, what will accepted as proof to claim from this account on maturity.
2. If they marriage certificate we get only after the marriage. but we may need the money before the marriage.

Please clarify

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Mahesh

1. There is no clarity on this point but as i understand that since birth certificate is required at the time of account opening therefore at time of maturity copy of same along with any govt id proof may suffice. Govt will issue detailed notification soon addressing all these concerns
2. Marriage invitation card is accepted as proof. Please wait for detailed notification from govt in this regard.

nishikant
nishikant
9 years ago

Sir mai yer

SIMPLY INDIAN
SIMPLY INDIAN
9 years ago

So the tax benefit will come under 80c only right?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  SIMPLY INDIAN

Thats correct

mukesh sunar
mukesh sunar
9 years ago

Hello sir 100. Ru per month jama kare to 1. Year bad kitana paisa milega

mukesh sunar
mukesh sunar
9 years ago

Meta matlab 100. Per month to14 year bad kitana paisa milega

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  mukesh sunar

As interest rate is variable therefore it cannot be calculated

sikander singh
sikander singh
9 years ago

sir in case in between unfortunatly mujhe kuch ho jaata hai to kya ye account band ho jyga?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  sikander singh

Account will remain active as it is in the name of a Girl Child. After 10 years of age, girl child can operate her account independently.

SWATI
SWATI
9 years ago

DEAR SIR,

PLEASE TELL ME THIS SCHEME CAN I USE TO MY SISTER DAUGHTER ACTUALLY SHE WAS EXPIRE AN HER CHILD IS 5 YEAR OLD AN 3 YEAR OLD SO CAN I OPEN THIS ACCOUNT IN NAME OF HER CHILD AN PAY OF ME AN THIS TAX EXEMPT FACILITY IS ALLOW TO ME…

KINDLY GIVE ME FEEDBACK .
REGARDS,
SWATI KADAM

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  SWATI

Only natural or legal guardian of a girl child can open this account. In my opinion you can open it for your sister’s girl child only if court has declared you as a legal guardian of your sister’s girl child.

Smita
Smita
9 years ago

Hi,
I agree it is a saving scheme for girl child. However at many places it is mentioned that amount acn be withdrawn at time of marriage and one of document required is marriage invitation card. What if my daughter does not want to amrry but want to have a fabulous career. What are the options in that scenerio?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Smita

Account will mature after 21 years from date of opening account.

Kish
Kish
9 years ago

Hi
Can we pay 1.5 lakh at one time and when is the best time to pay. I mean which month, year end or starting, which has more benefit…

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Kish

In case of cumulative interest option, you can invest towards the end of financial year. In case of monthly interest option, you can invest as and when you have funds for investment.

Mahesh
Mahesh
9 years ago

sir SSA says interest rate is taxable, so what rate of TAX will be applied and how it is going to be charged??

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Mahesh

Interest will be clubbed in your income and taxed as per your income tax slab.

Sreenivas
Sreenivas
9 years ago
Reply to  Nitin Bhatia

Hi If interest is taxed by clubbing into actual income, how it will come under EEE, as that of PPF account..?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Sreenivas

In this years budget, interest accrued through SSA is exempted from Income tax therefore now it is EEE i.e. same status as PPF account.

vineetha madhu
vineetha madhu
9 years ago

my doubt is, if I open an acc of 1.5 should we pay 1.5 per year or 1000 rs every year to keep the acco operative

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  vineetha madhu

You have to pay Rs 1000 every year to keep account operative.

vivek
vivek
9 years ago

can u please provide us account opening form in PDF format.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  vivek

I will share shortly

ashok
ashok
9 years ago

please provide us pdf form in marathi language

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  ashok

You may get from local post office.

yogesh
yogesh
9 years ago

HI Mr Nitin
MY self Yogesh -Where we can sumbit the form .I went to Post office they said we dont have this faclility ,I went to SBI they dont know about this .
CAn you pls tell me where to GO to open Sukanya Smridhi Account

YOGESH
9999954601
TECH.YOGESH@GMAIL.COM

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  yogesh

You can submit in Post Office only. Being a Govt undertaking they are only reducing their workload. You may request them to write on form that they cannot accept the form or you may complain to postmaster of head post office.

naveen
naveen
9 years ago

Hi,
I have taken SSA scheme for my girl child, but guardian in passbook is my wife’s name. can i claim tax exemption.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  naveen

Only legal or natural guardian can claim tax deduction. In my opinion, you cannot claim tax deduction.

Kirti Patel
Kirti Patel
9 years ago
Reply to  naveen

Nitinbhai,
I have one query and that’s SUKANYA Maturity TAX Free or NOT?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Kirti Patel

In the recent budget, maturity amount is declared tax free.

RAJESH
RAJESH
9 years ago

Whether this facility is available fir Nepali citizen also? What are the documents required to be submitted to open this account?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  RAJESH

All small savings schemes are available only for Resident Indians therefore you may not be available to open SSA.

Srinivas Rangaraju
Srinivas Rangaraju
9 years ago

There is a recent news that, there will be no tax on interest earned under SSA account..

Nitin Bhatia
Nitin Bhatia
9 years ago

In this years budget, finance minister has granted tax free status to SSA i.e. EEE similar to PPF account. Please check following link

http://businesstoday.intoday.in/story/union-budget-2015-16-sukanya-samridhhi-yojna-is-tax-free/1/216315.html

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