New Delhi, Business Desk. The government-backed Sukanya Samriddhi Yojana is a great investment option for Girl Child. Parents can create funds for higher education of their daughters by investing in this scheme. Also, parents can also collect the wedding expenses of their two daughters through this scheme. Sukanya Samriddhi Yojana (SSY) was launched in 2015 by Prime Minister Modi. At present, among the small savings schemes of the post office, the highest rate of interest is available in Sukanya Samriddhi Yojana. The rate of interest in this scheme is currently 7.6 percent.
This is the process of opening an SSY account
The SSY account can be opened by going to any post office office or authorized commercial bank. It can only be opened in the name of Girl Child. This account can be opened in the name of Girl Child by parents or legitimate parents. The SSY account can be opened only from the date of birth of the girl child to the age of 10 years. Parents are required to fill information such as name and address of daughter and guardian, information of daughter’s birth certificate and KYC information of guardian while opening Sukanya Samriddhi account.
To open an SSY account, one has to fill Sukanya Samriddhi Account Form (SSA-1) and submit it along with the necessary documents. The account is opened after verification of documents by the bank or post office. After the account is opened, a passbook is issued to the account holder. Please tell here that this scheme matures after the daughter’s age of 21 years.
These documents will be needed
Address proof of the parent has to be given to open SSY account, in which a copy of passport, driving license, utility bill or ration card can be given. Parents can give passport or Aadhaar card or PAN card copy as proof of identity. Apart from this, the birth certificate of the daughter will also have to be submitted.
Income tax exemption
Income tax exemption can also be claimed by investing in Sukanya Samriddhi Yojana. An investment of up to Rs 1.5 lakh annually in this scheme is eligible for income tax exemption. Thus, parents can avail income tax exemption on investment in the scheme under Section 80C of the Income Tax Act.