NEWS – Sukanya Samriddhi Yojana new rules from October 2024

ABOUT SUKANYA SAMRIDDHI YOJANA (SSY)

• Launch: 2015
• Campaign: Part of the “Beti Bachao Beti Padhao” initiative
• Purpose: To promote education and savings for girl children
• Nature: Small-deposit savings scheme specifically for the girl child
• Opening: Accounts can be opened with authorized commercial banks or India Post branches

• Age Limit: Girl child must be under 10 years at the time of account opening (account per girl child – Maximum of two SSY accounts per family) + Must be operated by the girl child once she turns 18

Features

• Deposit Limits:
  • Minimum: ₹250 per year
  • Maximum: ₹1.5 lakh per year (in multiples of ₹100)
• Deposit Duration: 15 years
• Maturity: After 21 years from account opening
• Interest: No interest after 21 years

Partial Withdrawal

• Purpose: Education of the account holder
• Amount: Up to 50% of the balance at the end of the financial year preceding the withdrawal application
• Eligibility: Account holder must be 18 years old or have completed 10th standard

Tax Benefits

• Section 80C Deductions: Investment deductions up to ₹1.5 lakh
• Tax-Exempt Interest: Interest is tax-free under Section 10
• Tax-Free Proceeds: Maturity or withdrawal proceeds are tax-exempt

New Rules (Effective from October 1, 2024)

• Guardian Changes: Accounts under non-legal guardian grandparents must be transferred to a legal guardian or natural parent. Accounts not transferred will be permanently closed.
• Irregular Accounts: Excess accounts (beyond two per family) will be closed to comply with scheme rules.