Sukanya Samriddhi Yojana (SSY) | Eligibility | Tax Benefits | Rules

Sukanya Samriddhi Yojana

In order to majorly address the issue of declining child sex ratio, Government of India launched a social campaign – 'Beti Bachao Beti Padhao (BBBP)', which means ‘Save girls, Educate the girl child’, on the 22nd of January 2015. 

This is a national initiative jointly run by the Ministry of Women and Child Development, Ministry of Health and Family Welfare, and Ministry of Human Resource Development. BBBP aims at achieving the following:

1. To stop gender discrimination of children and abolish the practice of sex determination.

2. To ensure the survival and protection of girls.

3. To ensure higher participation of girls in education and other areas.

What is Sukanya Samriddhi Yojana (SSY)

SSY aims at tackling a  major problem associated with the girl child, i.e. education and marriage. SSY aims at securing a bright future for the girl child in India by facilitating the parents of a girl child in building a fund for proper education and care-free marriage expenses of their girl child. SSY has introduced Sukanya Samriddhi Account for this purpose.

What are the tax benefits provided to SSY

In order to encourage investments in SSA, it has also been provided with tax benefits as follows:-

Investments made in the SSY Scheme are eligible for deduction under Section 80C subject to a maximum cap of Rs. 1.5 Lakhs

The interest that accures against this account which get compunded annually is also exempt from tax

The proceeds received upon maturity or withdrawal are also exempt from income tax.

References: Cleartax

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