Tax Savings in FY25: Government scheme for daughters will save tax; Know how much benefit you will get

Tax Savings in FY25, SSY: In this scheme, taxpayers can claim tax deduction by depositing up to Rs 1.5 lakh every year under section 80C. The benefit of section 80C can be availed only in the old tax regime.

Tax Savings in FY25, SSY: For the better future of daughters, the government’s scheme Sukanya Samriddhi Account Yojana (SSY) is also a great scheme for tax savings. This account can be opened in the name of a daughter below 10 years of age in a post office or authorized bank. This scheme was started by the Modi government in 2015. In this scheme, taxpayers can claim tax deduction by depositing up to 1.5 lakhs every year under section 80C. Know that there are currently two types of tax regimes in the country. New tax regime and old tax regime. You can avail the benefits of section 80C only in the old tax regime. Let’s know the details of the scheme …

SSY: Included in the EEE category

Sukanya Samriddhi Account has been kept in EEE category of investment. This means that the money invested and the interest as well as the maturity amount will not be taxed. Under the current tax rules of Sukanya Samriddhi Yojana and under section 80C of Income Tax Act, 1961, one can avail tax deduction of up to Rs 1.5 lakh annually on the principal amount invested.

SSY: Who can open the account

SSY account can be opened in banks and post offices and the account can be run till the age of 21 years or till the girl gets married after the age of 18 years. Parents or legal guardians of a girl child below the age of 10 years can open an SSY account in the name of the girl child. Interest rates for SSY are 8.2 per cent per annum from January 1, 2024. Interest rates are reviewed every quarter by the government.

At the time of opening the account, the age of the girl child should be less than 10 years. More than one Sukanya Samriddhi account cannot be opened for one girl child. At the same time, only two SSY accounts can be opened for a family.

However, there is also a rule that if a girl is born before the birth of twins or triplets, or if triplets are born first, then a third account can be opened. If a girl is born after the birth of twins or triplets, then a third SSY account cannot be opened.

SSY: What is the deposit limit

A minimum deposit of Rs 250 and a maximum of Rs 1.5 lakh per annum can be made in the SSY account. You will have to deposit at least the minimum amount every year for 15 years from the date of opening the account. After this, interest will continue to be received in the account till maturity, whether any deposit is made in the account or not.

SSY is a long term investment scheme as it offers the benefit of annual compounding of interest. In such a situation, even if you invest less, you will get good returns in the long term. The account can be freely transferred from one part of the country to another (bank/post office).

SSY: How to invest

Sukanya account can be opened through the nearest post office or any designated bank branch. You will have to submit KYC documents like passport, Aadhaar card along with the form and cheque/draft of initial deposit. Application forms can be obtained from the post office or designated government/private bank. You can also download the application form from the RBI website.

Here, know that the information of the parent or guardian opening the account on behalf of the girl is also necessary. For example, the name of the girl (primary account holder), the name of the parent or guardian opening the account (joint holder), the girl’s birth certificate, identity card of the parent or guardian (PAN, Aadhaar card, driving license etc.), address proof will have to be submitted along with the application form.

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