Sukanya Samriddhi Account

Sukanya Samriddhi Account (SSA): 

AIM : To encourage parents to save a fund for the future education of their female child.

It is a Government of India backed saving scheme targeted at the parents of girl child.

 Opening of SSA account

-This account can be opened in the name of girl child only who has not attended the age of ten years on the date of opening of the Account, by the natural or legal guardian. 

(The account can not be opened through grandparents or through any person other than natural or legal guardian, if any such account are opened, the same shall be treated as irregular and no any interest shall be paid whenever noticed.)

- Only one account can be opened either in Post Office or in authorized Bank.

-Documents required-

    i) Birth Certificate of girl child.

    ii) KYC (know your customers) documents of parents through which account is opening.  

-Operation

    i) Parent shall operate the account till account holder (girl child) attains the age of  18 years

    ii) Girl Child (account holder) shall operate the account after attaining the age of 18 years after submitting KYC documents.  

Deposit in SSA account:

Minimum deposit during the opening of account- ₹250

During Financial Year-  (i) Minimum- ₹ 250/-

                                   (ii) Maximum- ₹ 1,50,000/-

Deposit period- till completion of a period of fifteen years from the date of opening of account. 

Tax Benefits- 

    (i) SSA account has been specified under clause (viii) of Sub Section (2) of Section 80(C) of IT Act 1961, deposit made under the account enjoy benefit up to the overall maximum limit of ₹ 1,50,000.

    (ii) Withdrawal of any amount from SSA will not be included in the total income of a previous year of a person for the purpose of calculation of Income Tax under section 10 of IT Act 10.

   (iii) Legal guardian can claim Income Tax Benefit for the amount deposited by him or his/her girl child under SSA under clause (viii) of sun Section 4 of Section 80(C).

Withdrawal-

-Up to maximum of 50% of the balance amount in the account at the end of the preceding year is allowed under following condition-

    * Purpose- for higher education of girl child only

    * Age of account holder (girl child)- should be 18 years or passed 10th standard whichever is earlier.

Interest-

-Rate of interest - As per rate notified by Government of India from time to time.

Maturity-

- 21 years from the date of opening account.  

(Note- It is to clear that the account shall not mature on completion of 21 years of age of girl child, It is to clarify that the SSA account shall be matured after 21 years from the date of opening of account.

- The SSA account can be closed before 21 year on the occasion of marriage of girl child (not before age of 18 years of girl child in this case). Closure shall be allowed before one month from the date of intended marriage or after three months from the date of marriage. 

Premature Closure- 

-On the event of death of girl child (account holder)

- In case of extreme compassionate ground such as medical support in life threatening disease of the account holder

-In case of death of death of guardian.

Transfer of SSA Account-

-From one post office to another Post Office

-From Post Office to authorized bank

-From authorized Bank to Post Office