Sukanya Samriddhi Yojana was first introduced in 2015.
Deposits in the Sukanya Samriddhi Yojana account reduces taxable income by up to Rs 1.5 lakh under Section 80C.
The central government has increased the Sukanya Samriddhi Yojana (SSY) interest rates from 7.60% to 8%. Although the SSY interest rates are variable every quarter, investors who start their Sukanya Samriddhi Yojana account investments after the birth of their first girl child can expect to receive returns of between 7.60 and 8%.
If a person starts contributing to an SSY account as soon as their daughter is born, they can do so for 15 years. One may withdraw 50% of the maturity amount when the girl is 18 years old. Additionally, the remaining maturity amount may be withdrawn when the girl child becomes 21. If one feels it is inappropriate to withdraw money from their SSY account, they may take the whole withdrawal amount after the girl reaches the age of 21.
If a person invests Rs 12,500 every month throughout 12 instalments, they will be able to use up their whole Rs 15,000 income tax benefit limit under Section 80C in one fiscal year, assuming a 7.6% return on their investment at maturity. When the girl turns 21, the investor can fully withdraw all of their investment, and the SSY will mature with a value of about Rs 63,79,634. The girl child will become financially independent at age 21 if an investor begins contributing Rs 12,500 per month to the Sukanya Samriddhi Yojana account as soon as the girl is born.
A savings program known as Sukanya Samriddhi Yojana (SSY) was first introduced in 2015 as a component of the government’s Beti Bachao, Beti Padhao campaign. With the help of this program, parents can open a savings account at an authorised commercial bank or India Post branch for their girl child. Investment interest income is also exempt from taxation. The maturity amount also qualifies for tax advantages. Investors can modify their regular payments based on the maturity amount to accumulate the desired corpus.
If the girl has completed the 10th grade and is at least 18 years old, the corpus withdrawn may be applied to her higher education costs. The money can only be used to pay for admission and fee costs. The depositors must provide university entrance credentials and fee receipts as evidence that the money is being used for educational purposes.
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