Tax Benefit The amount deposited towards Sukanya Samriddhi Account is deductible under

section 80C of Income tax Act,1961 upto Rs.1.5 lakhs as notified by Notification No. 09/2015
dated 21.01.2015. Amount deposited in this account will be counted in overall limit of Rs. 1.50
Lakh under section 80C. Interest earned in this scheme as well as maturity amount is exempt
from Income Tax wef F.Y. 2014-15. Also Read- Interest on & withdrawal from Sukanya
Samriddhi Account exempt from Tax

Comparison with PPF in respect of Tax Benefit- Investment in Both PPF & Sukanya
Samriddhi Account is eligible for deduction under section 80C of the Income Tax Act, 1961.
Like PPF in Sukanya Samriddhi Account also Interest and Maturity amount is exempt from Tax.

Drawback of the Sukanya Samriddhi Account Scheme-

1. High Lock in Period

2. Limitation on No. of Account

3. Scheme do not provide for online transfer of Amount in this account. It allows only
payment by Cash, Cheque and Demand Draft.

4. No Clarity on Future Interest Rate for this account.

Benefits of Sukanya Samriddhi Account Scheme-

1. Higher Interest Rate

2. Tax Benefit Under Section 80C

3. Payment on Maturity to Girl Child.

4. Interest Payment even after Maturity if account is not closed.

5. Flexibility in Deposits- Any Number of time amount can be deposits in Multiple of Rs. 100
subject to Maximum Limit of Rs. 1.50 Lakh per year.

6. Transferable Anywhere in India.

7. Even Girl Child can operate after she attains the Age of 10 Year.

Conclusion - Its a good scheme started with a good motto by the Government with a long term
vision.

Also Check RBI Notification for Specimen of Sukanya Samriddhi Account Passbook and
account opening Form
Image courtesy of David Castillo Dominici at FreeDigitalPhotos.net