What is Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana (SSY) is a tax-saving investment option that focuses on helping the parents of a girl child secure her future. Parents or legal guardians can open an account under this scheme, either through banks or post offices with minimal documentation. Like other tax-saving investment options, SSY also comes with a mandatory lock-in period. This lock-in period generally stays in force until the girl child attains 21 years of age.

Eligibility criteria

  • Only the parents or legal guardians of the girl child can open the account.
  • The girl child for whom the account is to be opened should be a resident of India.
  • She should also be below 10 years of age.
  • Each girl child is only eligible for one SSY account
  • A maximum of two SSY accounts are allowed per household
  • If a family has one daughter followed by twin girl children, three SSY accounts are permitted to be opened for that household.

Documents needed for opening an SSY account

  • Sukanya Samriddhi Yojana account opening form
  • Certificate of birth of the girl child
  • KYC documents such as address proof and identity proof of the parents or legal guardians of the girl child
  • In the event of multiple children being born in a single birth, a medical certificate certifying such a birth

Sukanya Samriddhi Yojana: Main features

  • Account operation: The SSY account can be operated by the girl child herself when she reaches 18.

  • Deposits: The deposits made into the account should be in multiples of ₹100. The minimum amount you can deposit in one financial year is ₹500, while the maximum is capped at ₹1.5 lakh.

  • Mode of deposit: You can deposit the amount via demand draft, cheque, online transfers, or even by cash.

  • Account transfer: Transfer of an SSY account anywhere within the country between post office accounts and banks can be made without any additional fee.  

Tax benefits offered by Sukanya Samriddhi Yojana
Apart from providing a reasonable rate of interest, the SSY scheme also comes with tax benefits up to ₹1.5 lakh, as per section 80C of the Income Tax Act. Additionally, any interest generated on the investment is not taxable. And once the account reaches maturity, the withdrawn amount is also entirely exempted from tax.