Sukanya Samriddhi Account New Saving Scheme for Girl Child

Sukanya Samriddhi Account New Saving Scheme for Girl Child

The following are the features of recently announced Sukanya Samriddhi Account New Saving Scheme for Girl Child by Ministry of Finance

1.    The account can be opened by Natural or legal guardian of girl child.

2.    The age of the girl at the time of opening of account should not be more than 10 year.One year relaxation available this year.

3.    Minimum deposit amount is 1000 and maximum amount is 150000 per annum.

4.    Money must be deposited for 14 years.

5.    Amount can be deposited in cash of cheque.

6.    Interest is to be announced but expected rate is 8.5 to 9.00 % per month.

7.    Maturity date is 21 year from date of opening or date of marriage of of girl child whichever is earlier.

8.    50% withdrawal can be made for higher studies of girl child after her age of 18 years.

9.    Account shall be closed premature in the case of death of Gild child.

10.  Account may be opened in Authorised bank branches or post office branched 

MINISTRY OF FINANCE 

(Department of Economic Affairs}

NOTIFICATION

 

New Delhi, the 2nd December. 2014

G.S.R.863(E).— In exercise of the powers conferred by section 15 of the Government Savings Banks Act, 1873 (5 of 1873) , the Central Government hereby makes the following rules. namely:

 

1. Short title and commencement (I) These rules may be called the Sukanya Samriddhi Account Rules,2014.

 

(2) They shall come into force on the date of their publications in the Official Gazette.

2. Definitions In these rules, unless the context otherwise require . -

(a) ‘account’ means an account opened by a depositor in accordance with the provisions of these rules;

(b) ‘Aet’ means the Government Savings Banks Act. 1873 (5 of 1873) ;

(c) ‘deposit’ means the money deposited by the depositor in an account under the rules;

(d ) ‘Depositor’ means an individual who - on behalf of a minor girl child of whom he or she is the guardian deposits money in an account under the rules;

 

(e) ‘post office’ means any post office in India doing savings bank work and authorised to open an account under these rules;

(t) ‘Bank‘ means any branch of a commercial bank authorised by the Central Government to open an account under these rules;

(g) means financial year i.e. lst April to 3lst March;

(h) ‘Interest rate‘ means the rate as may be declared by the Government on yearly basis to be applicable on accounts opened under these rules;

(i) Words and expressions used herein and not defined but defined in the Post Office Savings Bank General Rules. 1981 shall have the meanings respectively assigned to them in those rules.

3. Application of Post Office Savings Bank General Rules, 1981 and the Post Office Savings Account Rules, 1981. The provisions of the Post Office Savings Bank General Rules, 1981 and the Post Office Savings Account Rules. 1981 may be applied in relation to matters for which no provision has been made in these rules.

4. Opening of Account.- l) 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 the account under these rules.

( 2) A depositor may open and operate only one account in the name of a girl child under these rules.

(3) Birth certificate of a girl child in whose name the account is opened shall be submitted by the guardian at the time of opening of the account in post office or bank along with other documents relating to identity and residence proof of the depositor.

 

(4) Natural or legal guardian of a girl child shall be allowed to open the account for two girl children only:

Provided that the natural or legal guardian of the girl child shall be allowed to open third account in the event of birth of twin girls as second birth or if the first birth itself results into three girl children, on production of a certificate to this effect from the competent medical authorities where the birth of such twin or triple girl children takes place.

5. Deposits .- (l) The account may be opened with an initial deposit of one thousand rupees and thereafter any amount in multiple of one hundred rupees may be deposited subject to the condition that a minimum of one thousand rupees shall be deposited in a financial year but the total money deposited in an account on a single occasion or on multiple occasions shall not exceed one lakh fifty thousand rupees in a financial year.

(2) Deposits in an account may be made till completion of fourteen years. from the date of opening of the account.

 

(3) An irregular account where minimum amount as specified in sub-rule (1) has not been deposited may be regularised on payment of a penalty of fifty rupees per year along with the said minimum specified subscription for the year (s) of default any time till the account completes fourteen years.

6. Mode of Deposit .- (l) The deposit in the account opened under these rules may be made -

a) in cash; or

b) by cheque or demand draft drawn in favour of the postmaster of the concerned post office or the Manager of the concerned bank where the account stands and an endorsement on the hack of such instrument shall be made and signed by the depositor indicating name of the account holder and account number in which the deposit is to be credited.

(2) Where deposit is made by cheque or demand draft. the date of encashrnent 0f the cheque or demand draft shall be the date of credit to the account.

 

7. Interest on deposit .- (1) Interest at the rate. to be notified by the Government, compounded yearly shall be credited to the account till the account completes fourteen years.

(2) In case of account holder opting for monthly interest, the same shall be calculated on the balance in the account on completed thousands. in the balance which shall be paid to the account holder and the remaining amount in fraction of thousand will continue to earn interest at the prevailing rate.

8. Operation of account (1) The account shall be opened and operated by the natural or legal guardian of a girl child till the girl child in whose name the account has been opened. attains the age of ten years.

(2) On attaining age of ten years, the account holder that is the girl child may herself operate the account. however, deposit in the account may be made by the guardian or any other person or authority.

 

9. Premature closure of account (1) In the event of death of the account holder. the account shall be closed immediately on production of death certificate issued by the competent authority. and the balance at the credit of the account shall be paid along with interest till the month preceding the month of premature closure of the account , to the guardian of the account holder.

 

(2) Where the Central Government is satisfied that operation or continuation of the account is causing undue hardship to the account holder, it may, by order. for reasons to be recorded in writing, allow premature closure of the account only in cases of extreme compassionate grounds such as medical support in life threatening diseases. death, etc.

10. Pass book .- (I) On opening an account, the depositor shall be given a pass book bearing the date of birth of the girl child, date of opening of account, account number. name and address of the account holder and the amount deposited.

(2) The pass hook shall be presented to the post office or bank. as the case may be, at the time of depositing money in the account and receiving payment of interest and also at the time of final closure of the account on maturity.

11. Transfer of account The account may be transferred anywhere in India if the girl child in whose name the account stands shifts to a place other than the city or locality where the account stands.

 

12. Withdrawal .- (1) To meet the financial requirements of the account holder for the purpose of higher education and marriage. withdrawal up to fifty per cent. of the balance at the credit. at the end of preceding financial year shall be allowed.

 

(2) The withdrawal referred to in sub-rule (1) shall be allowed only when the account holder girl child attains the age of eighteen years.

13. Closure on maturity .- (l) The account shall mature on completion of twenty-one years from the date of opening of the account :

Provided that where the marriage of the account holder takes place before completion of such period of twenty one years. the operation of the account shall not be permitted beyond the date of her marriage :

 

Provided further that where the account is closed under the first proviso. the account holder shall have to give an affidavit to the effect that she is not less than eighteen years of age as on the date of closing of account.

(2) On maturity. the balance including interest outstanding in the account shall be payable to the account holder on production of withdrawal slip along with the pass book.

(3) If the account is not closed in accordance with the provisions of sub-rule (1). interest as per the provisions of rule 7 shall be payable on the balance in the account till final closure of the account.

14. Power to relax .- Where the Central Government is satisfied that the operation of any provision of these rules causes undue hardship to the account holder or account holders. it may. by order and for reasons to be recorded in writing. relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.

Small Savings Deposits Interest Rates from 01-04-2016 to 30-06-2016

Savings Deposit

Rate of interest w.e.f. 01.04.2015 to 31.3.2016

Rate of interest w.e.f. 01.04.2016 to 30.6.2016

Savings Deposit

4

4

1 Year Time Deposit

8.4

7.1

2 Year Time Deposit

8.4

7.2

3 Year Time Deposit

8.4

7.4

5 Year Time Deposit

8.5

7.9

5 Year Recurring Deposit

8.4

7.4

5 Year Senior Citizens Savings Scheme

9.3

8.6

5 year Monthly Income Account Scheme

8.4

7.8

5 Year National Savings Certificate

8.5

8.1

Public Provident Fund Scheme

8.7

8.1

Kisan Vikas Patra

8.7

7.8 (will mature in 110 months)

Sukanya Samriddhi Account Scheme

9.2

8.6

Union Budget 2015 -Tax benefits under section 80C for the girl child under the Sukanya Samriddhi Account Scheme:

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.

With a view to allow the deduction under Section 80C to the parent or legal guardian of the girl child, amendment of Section 80C of the Act is proposed to be made so as to provide that a sum paid or deposited during the year in the Scheme in the name of any girl child of the individual or in the name of any girl child for whom such individual is the legal guardian, would be eligible for deduction under Section 80C of the Act.

(The above amendments will take effect from 1st April, 2015.)

 

Sukanya Samridhi Account 9.1 interest rate for investment during 2014 15

 

OFFICE MEMORANDUM

Government of India
Ministry of Finance
Department of Economic Affairs

F.NO. 2/3/2014.NS-II, DATED 20-1-2015

Subject: Launch of scheme for Girl Child named “Sukanya Samridhhi Account” by Hon’ble Prime Minister – rate of interest reg.

In compliance of announcement by Finance Minister in his Budget Speech 2014-15 the Government of India has introduced a new scheme named “Sukanya Samridhhi Account” vide Notification No.GSR No.863(E), dated 2nd December, 2014. It has been decided to allow 9.1% rate of interest on investments in the scheme during the financial year 2014-15.

This has the approval of Union Finance Minister.

(Rajendra Kumar Thakur)

Under Secretary to the Govt. of India

 

=======================================================================

Update on 29-01-2015

Sukanya Samriddhi Account – specially for girl child – Eligible for deduction U/s 80C of IT Act

This Investment Scheme is for a minor girl child below the age of  10 years.  Only the natural or legal guardians are allowed to open this account in the name of girl child, and you can open only one account in her name. The government, however, has relaxed the age limit if your child turned 10 within a year before the announcement. This means that if the child turned 10 anytime between December 2013 and December 2014, you can open such an account in her name.  You can open accounts only for two girl children. If you have twin girls in a second birth, and you already have a girl child, then you can open a third account. Same is applicable if you have triplets and all three are girls.

The initial deposit is Rs.1,000 and thereafter any amount in multiples of Rs.100. The total deposit you can make in a financial year should not exceed Rs.1.5 lakh. You can make deposits for 14 years from the date of opening of the account. The minimum deposit amount is Rs.1,000 in one financial year; failure to deposit this will cost you Rs.50 in penalty. Deposits can be made by the guardian or any other person or authority. Interest will be compounded yearly.

The government has declared 9.1% interest rate for this financial year. It will be reset every year.

In the unfortunate event of the child dying, the account will be closed immediately and the balance will be paid to the guardian of the account holder.  The account is transferable anywhere in India. Partial withdrawal—50% of the total amount—is allowed when the account holder turns 18, for financial requirements such as education or marriage. The account will mature after completion of 21 years from inception. Withdrawal before the child turns 18 is not allowed.

Procedure to open the investment Account

You can open this  account in a post office or an authorized bank branch. You will have to submit the child’s birth certificate along with other documents such as your identity and residence proof. You can deposit money in cash, by cheque or through demand draft. Till the girl child turns 10, you will be able to open and operate the account. After that, she can operate it herself.

On opening an account, a passbook will be given, which has to be presented to the post office or bank at the time of depositing money in the account or receiving payment of interest. At the time of finally closing the account on maturity, the passbook will be needed.

Tax Deduction U/S 80C

The amount deposited in this account is eligible for  deduction under section 80C  and, hence, the Rs.1.5 lakh that can be deposited in the account in a year will be tax exempt along with other deposit schemes come under the preview of this section.  This investment scheme works best for those who are looking for safe investments, and also for those who don’t have access to other investment products.  The matuirty amount and income are fully exempted from tax 

 Non Resident Indians (NRIs) ARE NOT  eligible for Sukanya Samriddhi Account Yojana 

Governed under the Post Office Savings Account Rules, Sukanya Samriddhi Yojana is a small saving scheme and according to Reserve Bank of India’s guidelines, any NRI would not be eligible to make any contributions and investment under small saving schemes and thus are NOT ELIGIBLE for Sukanya Samriddhi Account. (waiting for more clarifications)

 

Sukanya Samriddhi Account vs Public Provident Fund (PPF)

Points of Difference

Sukanya Samriddhi Account (SSA)

Public Provident Fund (PPF)

Eligible Persons

Only for Girl Child.

For every Indian Citizen.

Age Limit

From the birth till she attains age of 10 years.

No age limit.

Beneficiary

By the girl child who has attained the age of 10 years or by the natural or legal guardian.

By the Individual but by the natural or legal guardian for the minor child.

Where to open

Post office and nationalized banks but not private banks.

Post office and nationalized banks, including private banks.

Maximum Number of Accounts

One account for each girl child, maximum up to 2 or 3 accounts if twin girls are born in the second birth or triplets are born in the first birth.

Each Individual can hold only one account in his name.

Minimum Contribution

Rs.1,000

Rs.500

Maximum Contribution

Rs.1.5 lakhs in all accounts.

Rs.1.5 lakhs in all accounts.

Interest Rate

9.1% per annum for fiscal year 2014-15.

8.70% per annum for fiscal year 2014-15.

Tax Benefit on the Contribution

Contributed Amount will be deductible u/s 80C.

Contributed Amount will be deductible u/s 80C.

Tax Benefit on the interest earned

At present no tax benefit is announced for the interest earned. A mere sum of Rs.1,500 will be deductible u/s 10(32)  (awaiting for clarifications)

Interest Earned is tax free under PPF.

Time Period of contribution

Minimum tenure of contribution is 14 years from the date of opening of account.

Minimum 15 years and then in blocks of 5 years.

Maturity Period

21 years from the date of opening of account.

15 years from the fiscal year of opening of account.

Penalty

Rs.50 per year if minimum contribution is not made.

Rs.50 per year if minimum contribution is not made.

Mode of Deposit

Cash or Demand Draft or Cheque

Cash or Demand Draft or Cheque

Premature Withdrawal

Allowed up to 50% for the girl’s higher education and marriage after she attains 18 years of age

No premature withdrawal is allowed except in case of death of the account holder.

Loan Facility

No loan can be taken on the SSA balance.

Loan can be taken from the third year of opening of account to the sixth year.

Tax treatment on Maturity

No tax will be levied on the maturity amount.

No tax will be levied on the maturity amount.

 

 

 

 

Sukanya Samriddhi Account deposit eligible for Section 80C Deduction

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION NO. 09/2015

INCOME-TAX

Dated- 21st  January , 2015

In exercise of the powers conferred by clause (viii) of sub-section (2) of section 80C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the ‘ Sukanya Samridhi Account”  for the purposes of the said clause.

1.     This notification shall come into force with effect from the date of its publication in the Official Gazette.

[F. NO. 178/3/2015-ITA-1]

 

Sukanya Samriddhi Account – RBI ask banks to follow Rules

 

RBI/2014-15/494
IDMD(DGBA).CDD.No.4052/15.02.006/2014-15

March 11, 2015

The Chairman and Managing Director/Managing Director
Head Office, Government Accounts Department
State Bank of India/State Bank of Patiala/
State Bank of Bikaner & Jaipur/State Bank of Travancore/
State Bank of Hyderabad/State Bank of Mysore/Andhra Bank/
Allahabad Bank/Bank of Baroda/Bank of India/Punjab & Sind Bank/
Bank of Maharashtra/Canara Bank/Central Bank of India/ Corporation Bank/
Dena Bank/Indian Bank/Indian Overseas Bank/ Punjab National Bank/
Syndicate Bank/UCO Bank/Oriental Bank of Commerce/ Union Bank of India/
United Bank of India/Vijaya Bank/Axis Bank Ltd./ICICI Bank Ltd./IDBI Bank Ltd.

Dear Sir/Madam,

Sukanya Samriddhi Account

We forward herewith a copy of the Government of India Notification No. G.S.R.863(E) dated December 02, 2014 regarding the Sukanya Samriddhi Account for necessary action at your end. The Government of India, vide this Notification, has notified the Sukanya Samriddhi Account Rules, 2014, which came into force with effect from December 02, 2014.

2. Reporting of the Sukanya Samriddhi Account transactions i.e. receipt, payment, penalty, etc. may be directly done through the Government Account at Central Account Section, Reserve Bank of India, Nagpur on daily basis like the transactions of PPF, 1968, in order to have uniformity in reporting, reconciliation and accounting.

3. The Agency banks are required to observe the rules and regulations of the Scheme, and non-observance of rules and regulations would attract penal action, including de-authorization of the branch or bank. Pecuniary liabilities, if any, arising from such non-observance shall be borne entirely by the bank.

4. You may, therefore, approach Central Account Section, Reserve Bank of India, Nagpur for necessary arrangements to report Sukanya Samriddhi Account transactions with immediate effect.

5. Specimen of account opening application form and the passbook of the Sukanya Samriddhi Account are also enclosed for ready reference and necessary action at your end.

6. The contents of this circular may be brought to the notice of the branches of your bank operating the PPF, 1968 Scheme. These instructions should also be displayed on the notice boards of your branches for information.

Yours faithfully

(R. K. Singh)
Deputy General Manager

Encls: As above.

Latest Updates
  • Indian expatriates in the Gulf and those intending to go there on work should expand their initials in their ...
  • Taxman turns lens on domestic assets of high net-worth individuals The Income-Tax Department is zeroing in on ...
  • Levy Cheque return charges only if customer is at fault - RBI Circular
Recent Posts
Small Savings Scheme PPF,SCSC, Sukanya Samridhi NSC etc. Revised Interest Rates
Customs Baggage Rule
Budget 2016 Highlights (Direct Tax)
CHANGES IN CUSTOMS BAGGGE DECLARATION REGULATIONS
Economic Survey 2015-16
Interest Rates of Small Saving Schemes to be revised on a Quarterly Basis w. e. f 01/ 04 /2016
Government of India extended the last date for applying for conversion of PIO cards to OCI cards to June 30th 2016 from March 31.
Highlights of the Railway Budget 2015-16
Featured Video
  • Keralarealestatesite
  • NRI Guide 2013
  • NRI Guide 2013
  • Financial planning
  • Financialplanng
  • logo