Sukanya Samriddhi Yojana

Sukanya Samriddhi Account 2019 was launched by the Government of India, dated 02 December 2014, n The account opening facility is available in all branches of SBI under this scheme.


Demand draft
Online transfer through transfer/internet banking
For the welfare of the girl child
On behalf of the girl her parents or legal guardian
Three girls in the case of having two daughters or having two girls as second twins, or three girls in the case of having three daughters as first twins.

Initially, the minimum deposit amount is Rs 250. After that Rs 150 In coefficients of. 150000 in each financial year.

The period of deposit will be 21 years from the date of account opening.

The maximum deposit period will be 15 years from the date of account opening.

According to the notification of the Government of India, the option of payment of interest on a monthly basis which will be calculated in full thousand rupees is compounded annually with it (current rate 8.40% effective from 1 October 2019)

“That is the last investment you will liquidate in times of need,” says Gajendra Kothari, founder and managing director, Etica Wealth Management.

It also helps you track the progress of those investments.

Bangalore-based Prasad Patole, a 38-year-old IT services professional started a systematic investment plan in equity funds 18 months ago for his six-year-old daughter Krishnapriya.

“I do not know if my daughter will go for higher education or will become an entrepreneur.

Whatever path she chooses, she should have a corpus in her hand,” says Prasad.

Having a father who works in the financial services industry will work well for nine-year-old Aarya Palav, who lives in Dombivli.

Her father, Anand Palav, 38, has already started investing in a bouquet of products – mutual funds, public provident fund, and sukanya samriddhi yojana – in her name regularly

Mutual funds do not allow a second holder or a nominee for investments made in a minor child’s name.

  • The parent needs to be registered as a guardian.

  • You can also change the guardian in the MF folio by writing to the mutual fund.

  • Change of guardian becomes essential in case of death or separation of parents.

  • You need signature attestation from bank, bank account details, service request form and KYC letter.

Though KYC done with one mutual fund will be automatically picked up by other AMC, the conversion from minor to major needs to be done with each mutual fund.

After the folio attains major status, you lose control over those investments and your child is in charge of those investments.

  • Can you withdraw before your child becomes a major?

  • Yes. The sale proceeds get credited to the minor’s bank account.

  • And capital gains earned are clubbed to your income and taxed at the applicable rate.

  • If both the parents have incomes, then the gains are clubbed with the parent whose income is higher.

  • If the units are sold after the child attains the major status, the tax liability falls on the child.

Akhil Chandna, Associate Partner, Grant Thornton India LLP says, “The clubbing provisions of Section 64 of the Income-tax Act, 1961 specifically excludes ‘special child suffering from any disability as defined

In this case, a separate PAN should be applied for the child and a separate return has to be filed.”

Children-specific MF schemes only help in enforcing the discipline of staying invested, since they come with lock-ins.

But since these aren’t the marquee funds and don’t regularly get assets, many such schemes lack good and solid performance.

“Child plans of mutual funds are managed like other schemes as per the investment mandate of the scheme and do not offer any extra benefit.

  • Given the lock-in, they are best avoided,” says Solanki.
  • Children's plans typically come with a five-year lock-in or till the child turns 18 years of age.
  • Sukanya Samriddhi Yojana is a saving scheme offered by the government as part of the “Beti Bachao, Beti Padhao Yojana” for the benefit of the girl child.
  • It provides income-tax benefit under section 80 C of the Income Tax Act,1961.
  • However, the Indian Government has made some new changes in the Sukanya Samriddhi Yojana.
  • Earlier, during a financial year, if Rs 250 was deposited in the Sukanya Samriddhi account, it directly went to the default account.
  • Now, as per the new rule notified by the Government, the amount deposited in the default account will also be given the same interest as was fixed for the scheme.
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