Deduction for Sukanya Samriddhi Account Scheme in ITR I Section 80C
Sukanya Samriddhi Account Scheme [Section 10(11A)]
Pursuant to the Budget announcement in July 2014, a special small savings instrument for the welfare of the girl child has been introduced under the Sukanya Samriddhi Account Rules, 2014. The following tax benefits have been envisaged in the Sukanya Samriddhi Account scheme:—
|(i)||The investments made in the Scheme will be eligible for deduction under section 80C of the Act.|
|(ii)||The interest accruing on deposits in such account will be exempt from income tax.|
|(iii)||The withdrawal from the said scheme in accordance with the rules of the said scheme will be exempt from tax.|
Accordingly, a new clause (11A) is inserted in section 10 of the Act so as to provide that any payment from an account opened in accordance with the Sukanya Samriddhi Account Rules, 2014 shall not be included in the total income of the assessee. As a result, the interest accruing on deposits in, and withdrawals from any account under the scheme would be exempt from tax.
The Scheme has been notified under clause (viii) of sub-section (2) of section 80C vide Notification S.O. 210(E), dated 21-1-2015