Published On: Sat, Dec 10th, 2016

Now your daughters will save you from Income Tax officials

New Delhi: After the surgical strike on black money, the Income Tax officials are on the prowl looking for new ‘shikaar’.  However, there is a way by which you can keep the tax officials away.  One of the safest ways is to open an account under the Sukanya Samriddhi Yojana. Not only you will save tax, but also better returns on your funds.

Under the scheme, one gets more returns than the PPF, and it also helps in tax planning  of the parents. You can open the account if you have a daughter up to 10 years old. This gets you an interest of 8.1%, better then that what you get if you invest in PPF.

How to open the account

1. You can get the account opened with any post office or bank.

2. Any bank that offers PPF facility usually offers Sukanya Samriddhi Yojna account also.

Documents required to open the account

1. Birth certificate of the daughter

2.  IDs of depositors (Parents) like Voter ID, PAN Card, Aadhar, Ration Card, etc.

3. Proof of residence

4. You can get the form for opening the account from bank/post office

5. Once your account is opened, you will get a passbook

6. You can also use net banking for deposits

Who can open an account

1. Only legal and biological parents of a girl child can open accounts

2. You can just open one account in name of your girl child

3. You can open accounts for your two daughters. In case of twin daughters, you can have a third account.

Benefits of Sukanya Samriddhi Yojana

1.        Interest more than PPF

2.        IT exemption under section 80C of  Income Tax

3.        Interest and maturity amount, both are tax free

How much can you deposit

1.        Minimum deposit of  Rs 1,000

2.        Maximum of Rs 1.5 lakh in one year

3.        If you are unable to deposit minimum amount in a year, then next year you will have to pay a penalty of Rs 50

When can you withdraw money

1.        You can’t withdraw till your daughter is 18

2.        Deposit matures once your daughter is 21

3.        You can withdraw partially after your daughter is 18, that is you can withdraw up to 50%

4.        Account is closed in case of death, and the deposit is paid to parents