In view of promoting the welfare of the girl child, the Government of India has come up with a scheme known as “Sukanya Samriddhi Yojana”. Under this scheme, the amount can be deposited by opening a Sukanya Samriddhi Account in the name of a girl child.
What are the tax benefits of the Sukanya Samriddhi Account?
- The interest on this account accrues annually. It is exempt from tax u/s 10(11A)
- The amount received on maturity or withdrawal from the Sukanya Samriddhi Account is also tax-exempt u/s 10(11A).
- Investments made in Sukanya Samriddhi Yojana is eligible for deduction u/s 80C up to Rs. 1,50,000.