Sukanya Samriddhi Account Scheme
Sukanya Samriddhi Account Scheme is been notified by Ministry of Finance vide Notification No. G.S.R.863(E) Dated 02.12.2014. Scheme become operational by notification of rules namely ‘Sukanya Samriddhi Account Rules, 2014’.
These Rules were subsequently amended vide Notification No.G.S.R.323(E) dated-18.03.2016 by which government has notified ‘Sukanya Samriddhi Account Rules, 2016’. These Rules were further amended vide Notification No.G.S.R.617(E) dated-05.07.2018 by which government has notified Sukanya Samriddhi Account (Amendment) Rules, 2018
Video Explanation by CA Satbir Singh in Hindi
What are the benefits under Income Tax Act for Opening Sukanya Samriddhi Account ?
Contribution : The amount deposited towards Sukanya Samriddhi Account is deductible under section 80C of Income tax Act,1961 upto Rs.1.5 lakhs as notified by Notification No. 09/2015 dated 21.01.2015. Amount deposited in this account will be counted in overall limit of Rs. 1.50 Lakh under section 80C.
Interest : Interest earned in this scheme as well as maturity amount is exempt from Income Tax w e f F.Y. 2014-15. [ Section 10(11A) of Income Tax Act ]
Who can open Sukanya Samriddhi Account ?
The Account may be opened by the guardian in the name of a beneficiary who has not attained the age of ten years as on the date of opening of the Account:
However nothing shall affect a beneficiary born on or after the 2nd December, 2003, whose Account was opened on or before the 2nd December, 2015.
“Beneficiary” means an eligible girl child who is a resident Indian citizen at the time of opening of the account and remains so till the maturity or closure of the Account;
“Guardian” means natural or legal guardian of the beneficiary; [ Which means Parents of adopted Child adopted are also Guardian ]
“maturity” means maturity of an Account on completion of a period of twenty-one years from the date of its opening;
What are the documents required for opening Sukanya Samriddhi Account ?
An application for opening of an Account in the Post Office or the Bank shall be accompanied
- with the birth certificate of the beneficiary in whose name the Account is to be opened,
- along with other documents relating to identity and residence proof of the guardian.
Can Wife and Husband open two Account for one Girl Child under Sukanya Samriddhi Account
One Girl One Account : Every beneficiary shall have a single Account under Sukanya Samriddhi Account Scheme
Thus more than once account cannot be opened for a Girl Child even if depositor are different.
For how many Girl Child account can be opened in Sukanya Samriddhi Account Scheme?
An Account shall be opened for a maximum of two girl children in one family:
“family” means a unit consisting of a person and his spouse (both or either of whom are alive or deceased) and their children, adopted or otherwise;
However more than two Accounts may be opened for girl children in a family if such children are born in the first and/or in the second order of birth, on production of a certificate to this effect from the competent medical authority regarding the birth of such multiple girl children in the first two orders of birth in a family:
But account under the scheme not allowed to be opened for girl child born in second or successive birth if first order of birth itself in a particular family results in two or more surviving girl children.
Where one can open account under Sukanya Samriddhi Account Scheme ?
Account can be opened at any Post Office or the Bank.
“Bank” means any branch of a public sector or private sector commercial bank authorized by the Government to open an Account under Sukanya Samriddhi Account Scheme.
“post office” means any post office in India doing savings bank work and authorized to open an Account under
What is the minimum Deposit under Sukanya Samriddhi Account Scheme ?
The Account may be opened with a minimum initial deposit of Rs 250 and thereafter any amount in multiples of one hundred rupees may be deposited in an Account subject to the condition that a minimum of one thousand rupees shall be made as deposit in a financial year in one Account.
An Account in which minimum amount as specified above has not been deposited shall be considered as an Account under default:
However an Account under default may be regularised on payment of a penalty of Rs 50 per year along with the such minimum specified amount for the year or years of default .
If in the case of any Account, the default is not regularised within 15 years of the opening of the Account, then
- the whole deposit, including the deposits made prior to the date of default, shall be eligible only for interest rate prescribed for Post Office Savings Bank at the time of its maturity and
- any amount credited wrongly by way of interest into an Account under default shall be reverted to the Government account as soon as it comes to the notice of the Bank or the post office concerned.
- However it shall not apply if the default occurred because of the death of the guardian of the Account holder who opened the account and in such cases the Account shall be eligible for interest under Sukanya Samriddhi Account Scheme .
What is the Maximum Deposit under Sukanya Samriddhi Account Scheme ?
The total money deposited in an Account shall not exceed Rs 150000 in a financial year:
However deposit in excess of one lakh fifty thousand rupees in any financial year shall, if accepted due to any accounting error, not be eligible for any interest:
Such amount, which is deposited in excess of an annual ceiling of one lakh fifty thousand rupees, may be withdrawn anytime by the depositor.
For how many years Deposits can be made in Sukanya Samriddhi Account Scheme ?
Deposits may be made in an Account till the completion of a period of 15 years from the date of opening of such Account.
Note : The maturity of the account is 21 years from the date of opening of account. In other words No Deposit for the period from 16th to 21st Year of account.
Who can Deposit in Sukanya Samriddhi Account ?
The deposit in the Account may be made by
- the guardian or
- by the beneficiary concerned if such beneficiary has crossed the age of ten years.
How can the Deposit be made in Sukanya Samriddhi Account ?
Mode of Deposit – Deposit can be made in any of the following mode :-
2. by cheque or demand draft drawn in favour of the postmaster of the post office concerned or the Manager of the Bank concerned where the Account is opened, with an endorsement on the back of such instrument made and signed by the depositor indicating the name of the Account holder and Account number in which the deposit is to be credited;
3.through electronic means (e-transfer) in the concerned post office or Bank if such post office or bank has access to the facility of CBS.
CBS” means Core Banking Solution platform or any other electronic platform which electronically connects all offices of a Bank and or the postal department simultaneously or in phases, for bringing speed, uniformity and ease in operational matters.
When will deposit be Credited into Sukanya Samriddhi Account ?
The date of credit of the deposit to the Account shall be determined as under:
(a) where the deposit is made by cheque, the date of encashment of the cheque;
(b) where the deposit is made by demand draft, the date of submission of the same to the Bank or post office; and
(c) where the deposit is made by e-transfer, the date of deposit.
Who can operate the account opened under Sukanya Samriddhi Account and can the girl child operate the account?
(1) The Account shall be operated by the guardian till the beneficiary Account holder attains the age of 10 years or till the beneficiary Account holder attains the age of eighteen years.
(2) The Account shall be operated by the beneficiary Account holder after such Account holder attains the age of eighteen years:
However the Account may be operated by the beneficiary Account holder after such Account holder attains the age of ten years.
What is the Interest Rate in Sukanya Samriddhi Account ?
No Fixed Interest Rate- : The interest on deposit shall be compounded yearly at the rate notified by the Government in the Official Gazette from time to time and shall be credited, rounded off to the nearest rupee, to the Account of the beneficiary at the end of each financial year.
The interest shall be calculated for the calendar month on the lowest balance in an Account on the deposits made between the close of the 10th day and the end of the month.
Sukanya Samriddhi Account Interest Rate Table with Minimum and Maximum Investment lImit
|S. No.||Financial Year||Date Range||Interest Rate||Minimum Investment||Maximum Investment|
|1||2014-15||01/04/2014 to 31/03/2015||9.1 %||₹ 1,000/-||₹ 1,50,000/-|
|2||2015-16||01/04/2015 to 31/03/2016||9.2 %||₹ 1,000/-||₹ 1,50,000/-|
|3||2016-17||01/04/2016 to 30/09/2016||8.6%||₹ 1,000/-||₹ 1,50,000/-|
|4||2016-17||01/10/2016 to 31/12/2016||8.5%||₹ 1,000/-||₹ 1,50,000/-|
|5||2016-17||01/01/2017 to 31/03/2017||8.4%||₹ 1,000/-||₹ 1,50,000/-|
|6||2017-18||01/04/2017 to 31/03/2018||8.1%||₹ 1000||₹ 1,50,000/-|
|8||2018-19||01/04/2018 to 30/09/2018||8.1%||₹ 1000 (₹ 250 from 5th July 2018)||₹ 1,50,000/-|
Interest After Maturity of account under Sukanya Samriddhi Account Scheme–
No interest shall be payable once the Account completes twenty-one years from the date of its opening.
No Interest on Deposit made on or after 10th day of Month
The interest shall be calculated for the calendar month on the lowest balance in an Account on the deposits made between the close of the tenth day and the end of the month. So Account holder will not get any interest on amount deposited after 10th of the Month for the Month of Deposit.
Interest on Contribution in Excess of Rs. 1.50 Lakh Per Annum and withdrawal of excess payment
Deposit in excess of one lakh fifty thousand rupees in any financial year shall, if accepted due to any accounting error, not be eligible for any interest and such amount, which is deposited in excess of an annual ceiling of one lakh fifty thousand rupees, may be withdrawn anytime by the depositor.
Interest on Account in Default
If in the case of any Account, the default is not regularised within fifteen years of the opening of the Account, then the whole deposit, including the deposits made prior to the date of default, shall be eligible only for interest rate prescribed for Post Office Savings Bank at the time of its maturity and any amount credited wrongly by way of interest into an Account under default shall be reverted to the Government account as soon as it comes to the notice of the Bank or the post office concerned. if the default occurred because of the death of the guardian of the Account holder who opened the account than account holder will get interest as applicable to Sukanya Samriddhi account.
Interest on Change in Status of Account holder to non-citizen or non-resident of India
In the event of change of status of the Account holder’s citizenship or residential status, no interest shall be deemed to accrue to the Account from the change of such status and the Account shall be deemed to be closed prematurely from that date. In case, any interest was credited to the Account after the change of resident status or citizenship of the Account holder, be reverted to the Government account by the post office or the Bank concerned, immediately on being informed of such change in the status of the Account holder.
When Premature closure of Sukanya Samriddhi Account is allowed ?
Premature closure of account –
Though the duration of the Sukanya Samriddhi account is 21 years from the date of the opening of the account but request for premature closure can be made in following scenarios :-
1. Death of the account holder– In the event of death of the Beneficiary Account holder, the Account shall be closed immediately, on the production of death certificate issued by the competent medical authority, and the balance at the credit of the Account and interest due thereon till the date of death shall be paid to the guardian.
2. Account holder become a non-citizen or NRI-
- If, after the opening of an Account, the Account holder becomes a
- non-citizen or
- non-resident of India,
intimation to this effect shall be given by the guardian or the Account holder to the post office or the Bank concerned, as the case may be, within a period of one month from the date of such status of the Account holder’s citizenship or resident status.
- In the event of change of status of the Account holder’s citizenship or residential status, no interest shall be deemed to accrue to the Account from the change of such status and the Account shall be deemed to be closed prematurely from that date.
- The balance at the credit of an Account on the date of deemed closure shall—
(a) be returned, along with interest due, to the Account Holder and if the account holder is not alive, then to the guardian; (b) in case, any interest was credited to the Account after the change of resident status or citizenship of the Account holder, be reverted to the Government account by the post office or the Bank concerned, immediately on being informed of such change in the status of the Account holder.
3. Extreme compassionate grounds–
Where the post office or the Bank concerned is satisfied, in cases of extreme compassionate grounds such as
- medical support in life-threatening diseases of the Account holder or
- death of the guardian,
that the operation or continuation of the Account is causing undue hardship to the Account holder, it may, after complete documentation, by order and for reasons to be recorded in writing, allow premature closure of the Account:
- However no premature closure of an Account under shall be made before completion of 5 years of the opening of such Account:
4. For Other Reasons– Premature closure of an Account may be permitted, anytime after the opening of an Account, for any reason other than provided under this sub-rule, and in which case the whole deposit shall be eligible only for the interest rate prescribed for the Post Office Savings Bank.
What document depositor will get for deposit made in Sukanya Samriddhi Account ?
(1) On opening an Account, the guardian shall be given a pass book bearing
- the name, address and date of birth of the Account holder,
- date of opening of Account,
- Account number,
- name and address of the guardian,
- relationship with the Account holder and
- the amount deposited.
(2) A duplicate passbook may be subsequently issued in the event of loss, mutilation, etc., of the original passbook, on the written request of the guardian or the Account holder, on payment of a fee of fifty rupees and such fees shall be creditable to the Government account.
(3) The guardian or the Account holder shall have the option to maintain the Account records exclusively in electronic form, provided the post office or Bank concerned has access to the facility of CBS.
Whether the Sukanya Samriddhi Account can be Transferred ?
Transfer of account to other place
(1) The Account may be transferred anywhere in India and from or to post offices and from or to Banks and between post office and Bank, free of cost on furnishing of proof of shifting of residence of either
- the guardian or
- the Account holder and
otherwise, on payment of a fees of one hundred rupees to the post office or the Bank to which the transfer is made.
(2) The process of transfer shall be effected electronically if the post office or the Bank concerned, has access to the facility of CBS.
Whether withdrawal can be made from Sukanya Samriddhi Account ?
Pre-Mature Withdrawal for Education
(1) Withdrawal of upto a maximum of 50% of the balance in the Account at the end of the financial year preceding the year of application for withdrawal, shall be allowed for the purpose of higher education of the Account holder but such withdrawal shall not be allowed unless
- the Account holder attains the age of 18 years or
- has passed tenth standard,
whichever is earlier.
(2) The application for withdrawal shall be accompanied by a
- documentary proof in the form of a confirmed offer of admission of the Account holder in an educational institution or
- a fee-slip from such institution clarifying such financial requirement.
(3) The withdrawal may be made as one lump sum or in instalments, not exceeding 1 per year, for a maximum of 5 years, subject to the limit specified i.e 50% of the balance in the Account at the end of the financial year preceding the year of application for withdrawal, shall be allowed for the purpose of higher education of the Account holder
(4) Amount of withdrawal shall be restricted to the actual demand of fee and other charges required at the time of admission as shown in the offer of admission or the relevant fee-slip issued by the educational institution.
How to close Sukanya Samriddhi Account ?
Closure on maturity or before maturity due to Marriage of Account Holder and Payment of Interest and Principal on Maturity
1 The Account shall mature on completion of a period of 21 years from the date of its opening:
2 Final closure of the Account may be permitted before completion of such period of twenty- one years, if the account holder, ,
- on an application , makes a request for such premature closure for reasons of intended marriage of the Account holder and
- on furnishing of age proof confirming that the applicant will not be less than eighteen years of age on the date of marriage:
- No such premature closure shall be made
- before one month preceding the date of the marriage or
- after three months from the date of such marriage.
(3) On maturity, the balance including interest outstanding in the Account shall be payable to the Account holder,
- on an application by the Account holder for closure of the Account, and
- on furnishing documentary proof of her identity, residence and citizenship.
(3) No interest shall be payable once the Account completes 21 years from the date of its opening.
Comparison with PPF in respect of Tax Benefit- Investment in Both PPF & Sukanya Samriddhi Account is eligible for deduction under section 80C of the Income Tax Act, 1961. Like PPF in Sukanya Samriddhi Account also Interest and Maturity amount is exempt from Tax.
What is the Age Restriction for Opening of Account under Sukanya Samriddhi Account Scheme ?
The account may be opened by the natural or legal guardian in the name of a girl child from the birth of the girl child till she attains the age of ten years and any girl child, who had attained the age of ten years, one year prior to the commencement of these rules shall also be eligible for opening of account under these rules. Scheme is been commenced from 02.12.2014.
What is the Grace Period for Opening of Account under Sukanya Samriddhi Account Scheme ?
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 to 1.12.2015.
List of Banks Authorized to Open account under Sukanya Samriddhi Yojana
1. State Bank of India 2. Andhra Bank 3. Allahabad Bank 4. Bank of Baroda 5. Bank of India 6. Punjab & Sind Bank 7. Bank of Maharashtra 8. Canara Bank 9. Central Bank of India 10. Corporation Bank 11. Dena Bank 12. Indian Bank 13. Indian Overseas Bank 14. Punjab National Bank 15. Syndicate Bank 16. UCO Bank 17. Oriental Bank of Commerce 18. Union Bank of India 19. United Bank of India 20. Vijaya Bank 21. Axis Bank Ltd. 22. ICICI Bank Ltd. 23. IDBI Bank Ltd.
Document required for opening Sukanya Samriddhi account are:-
- Birth documents of girl child (Birth certificate)
- Address proof of the Guardian
- Identity proof of the Guardian
- 3 Photos of of the Guardians and 3 photos of the child
- Pan card and Aaadhar card copies of of the Guardians
Drawback of the Sukanya Samriddhi Account Scheme-
1. High Lock in Period
2. Limitation on No. of Account
3. Scheme do not provide for online transfer of Amount in this account if account is opened with post office. It allows only payment by Cash, Cheque and Demand Draft. In respect of account with bank online transfer in this account is possible.
4. No Clarity on Future Interest Rate for this account.
Benefits of Sukanya Samriddhi Account Scheme-
1. Higher Interest Rate
2. Tax Benefit Under Section 80C
3. Payment on Maturity to Girl Child.
4. Flexibility in Deposits- Any Number of time amount can be deposits in Multiple of Rs. 250 subject to Maximum Limit of Rs. 1.50 Lakh per year.
5. Transferable Anywhere in India.
6. Even Girl Child can operate after she attains the Age of 10 Year.