What Is Sukanya Samriddhi Yojana

What is Sukanya Samriddhi Yojana?
 It was launched on 22 January 2015.

 Aim: Betterment of the girl child in the country by abolishing sex determination,
gender discrimination, protection of girls, and higher participation of girls in education and
other fields.
 Features of Sukanya Samriddhi Account:
o Minimum deposit ₹ 250/- Maximum deposit ₹ 1.5 Lakh in a financial year.
o Account can be opened in the name of a girl child till she attains the age of 10
years.
o Only one account can be opened in the name of a girl child.
o The account can be opened in Post offices and in authorised banks.
o Withdrawal shall be allowed for the purpose of higher education of the
Account holder to meet education expenses.
o The account can be prematurely closed in case of marriage of girl child after
her attaining the age of 18 years.
o The account can be transferred anywhere in India from one Post office/Bank to
another.
o The account shall mature on completion of a period of 21 years from the date
of opening of the account.
o Deposit qualifies for deduction under Sec.80-C of I.T.Act.
o Interest earned in the account is free from Income Tax under Section -10 of
I.T.Act.
About Public Provident Fund (PPF) Scheme:

 The PPF Scheme is a very popular long-term savings scheme in India because of
its combination of tax savings, returns, and safety.
 The PPF was first offered to the public in the year 1968 by the Finance Ministry’s
National Savings Institute.
 Objective: To help individuals make small savings and provide returns on the
savings.
 It is one of the safest investment products. i.e., the government of India
guarantees your investments in the fund
 Tenure: 15 years (Can be renewed in blocks of 5 years).
 Interest rate: Interest rates currently payable on such accounts stand at 7.1%.
 Investment Amount: Minimum Rs.500, Maximum Rs.1.5 lakh p.a.
 Who is eligible for a PPF account? Any Indian citizen can open a PPF account.
 The PPF accounts cannot be held jointly, though you can make a nomination.
 Investment in PPF is tax-exempt under section 80C of the Income Tax Act (ITA), and
the returns from PPF are also not taxable.
 Duration is 15 years. Thereafter, on application by the subscriber, it can be extended for
1 or more blocks of 5 years each.
 The rate of interest is determined by Central Govt. on quarterly basis.
 At any time after the expiry of 1 year from the end of the year in which the initial
subscription was made but before expiry of 5 years from the end of the year in which the
initial subscription was made, the account holder may, apply for obtaining a loan
consisting of a sum not exceeding 25% of the amount that stood to credit at the end of
the second year immediately preceding the year in which the loan is applied for.
 Partial withdrawal is permissible from 5th financial year. One withdrawal is permissible
every year from 7th financial year.
 Interest earned in PPF account is completely exempted from Income Tax under Sec-
10(15 of Income tax Act).
 Nomination facility is available in the name of one or more persons. The shares of
nominees may also be defined by the subscriber.
 The account can be transferred to other branches/ other banks or Post Offices and vice
versa upon request by the subscriber. The service is free of charges.
PPF - Public Provident fund is a popular investment scheme among
investors courtesy its multiple investor-friendly features and
associated benefits. It is a long-term investment scheme popular
among individuals who want to earn high but stable returns. Proper
safekeeping of the principal amount is the prime target of individuals
opening a PPF account.
What is PPF?
When a PPF scheme is opened, the PPF account is scheduled for the
applicant where the money is deposited every month and interest is
compounded.
Importance of a PPF Account
A Public provident fund scheme is ideal for individuals with a low

risk appetite. Since this plan is mandated by the government, it is
backed up with guaranteed returns to protect the financial needs of the
masses in India. Further, invested funds in the PPF account are not
market-linked either.
Investors can also undertake the public provident fund regime to

diversify their financial and investment portfolios. At times of
downswing of the business cycle, PPF accounts can provide stable
returns on investment annually.
Features of a PPF Account

The key characteristics of a public provident fund scheme can be
listed as follows–
Interest Rate 7.1% per annum
Tax Benefit Up to Rs.1.5 lakh under Section 80C
Risk Profile Offers guaranteed, risk-free returns
Minimum Investment Amount Rs.500
Maximum Investment Amount Rs 1.5 lakh per annum.
Tenure 15 years
Investment tenure
A PPF account has a lock-in period of 15 years on investment, before

which funds cannot be withdrawn completely. An investor can choose
to extend this tenure by 5 years after the lock-in period is over if
required.
Principal amount
A minimum of Rs. 500 and a maximum of Rs. 1.5 Lakh can be

invested in a provident fund scheme annually. This investment can be
undertaken on a lump sum or installment basis. However, an
individual is eligible for only 12 yearly instalment payments into a
PPF account. Investment in a PPF account has to be made every year
to ensure that the account remains active.
Loan against investment
Public provident funds provide the benefit of availing loans against

the investment amount. However, the loan will only be granted if it is
taken at any time from the beginning of 3rd year till the end of the
6th year from the date of activation of the account.
The maximum tenure of such loans against PPF is 36 months. Only

25% or less of the total amount available in the account can be
claimed for this purpose.
Eligibility Criteria
Indian citizens residing in the country are eligible to open a PPF

account in his/her name. Minors are also allowed to have a Public
provident fund account in their name, provided it is operated by their
parents.
Non-residential Indians are not permitted to open a new PPF

account. However, any existing account in their name remains active
till the completion of tenure. These accounts cannot be extended for 5
years – a benefit available to Indian residents.
Interest on a PPF Account
The interest payable on public provident fund schemes is determined

by the Central Government of India. It aims to provide higher interest
than regular accounts maintained by various commercial banks in the
country.
Interest rates currently payable on such accounts stand at 7.1%, and

are subject to quarterly updates at the discretion of the government.
How to Open a PPF Account?
Both offline and online procedures are available for an individual

provided he/she meets requisite parameters mentioned in the
eligibility criteria. Activating PPF online can be done by visiting the
portal of a chosen bank or post office.
The following documents have to be produced at the time of

activation of a public provident fund account –
1. KYC documents verifying the identity of an individual, such as

Aadhaar, Voter ID, Driver’s License, etc
2. PAN card
3. Residential address proof
4. Form for nominee declaration
5. Passport sized photograph
PPF – Tax Benefits
Income tax exemptions are applicable on the principal amount

invested in a PPF as an account. The entire value of investment can be
claimed for tax waiver under section 80C of the Income Tax Act of
1961. However, it should be kept in mind that the total principal that
can be invested in one financial year cannot exceed Rs. 1.5 Lakh.
The total interest accrued on PPF investment is also exempt from any

tax calculations.
Therefore, the entire amount redeemed from a PPF account upon

completion of maturity is not subject to taxation. This policy makes
the public provident fund scheme attractive to many investors in
India.
Withdrawal
There are multiple clauses that an individual must adhere to in case

he/she wants to withdraw funds from the PPF account.
Mandatory lock-in of 15 years is imposed on the principal amount

invested in such plans. In case of emergencies related to specific end-
uses, partial withdrawal can be made. However, this amount can only
be extracted after the completion of 5 years of activation of the
account. Up to 50% of the total balance can be withdrawn in one
transaction each financial year succeeding in the 4th year.
Investors should note that funds invested in a PPF account cannot be

liquidated before the completion of the maturity period. Individuals
looking for long-term risk-free investment options providing stable
yields can easily opt for this government-backed instrument.
Loan Against PPF Scheme
 Between the third and fifth years of your PPF account, you can
take out a loan.
 The loan amount can be no more than 25% of the second year
immediately preceding the loan application year.
 If the first loan is entirely repaid, a second loan can be taken out
before the sixth year.
Procedure to Withdraw PPF Money
The procedure for withdrawing from a PPF
If you want to withdraw some or all of the money from your PPF
account, you can do so.
Step 1: Complete the application form (Form C) with the necessary
information.
Step 2: Submit the application to the bank branch where your PPF
account is located.

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What is Sukanya Samriddhi Yojana?

 It was launched on 22 January 2015.

About Public Provident Fund (PPF) Scheme:

PPF - Public Provident fund is a popular investment scheme among

investors courtesy its multiple investor-friendly features and

associated benefits. It is a long-term investment scheme popular

safekeeping of the principal amount is the prime target of individuals

Importance of a PPF Account

A Public provident fund scheme is ideal for individuals with a low

Investors can also undertake the public provident fund regime to

Features of a PPF Account

Interest Rate 7.1% per annum

Tax Benefit Up to Rs.1.5 lakh under Section 80C

Risk Profile Offers guaranteed, risk-free returns

Minimum Investment Amount Rs.500

Maximum Investment Amount Rs 1.5 lakh per annum.

A PPF account has a lock-in period of 15 years on investment, before

A minimum of Rs. 500 and a maximum of Rs. 1.5 Lakh can be

Public provident funds provide the benefit of availing loans against

The maximum tenure of such loans against PPF is 36 months. Only

Indian citizens residing in the country are eligible to open a PPF

Non-residential Indians are not permitted to open a new PPF

Interest on a PPF Account

The interest payable on public provident fund schemes is determined

Interest rates currently payable on such accounts stand at 7.1%, and

Both offline and online procedures are available for an individual

The following documents have to be produced at the time of

1. KYC documents verifying the identity of an individual, such as

PPF – Tax Benefits

Income tax exemptions are applicable on the principal amount

The total interest accrued on PPF investment is also exempt from any

Therefore, the entire amount redeemed from a PPF account upon

There are multiple clauses that an individual must adhere to in case

Mandatory lock-in of 15 years is imposed on the principal amount

Investors should note that funds invested in a PPF account cannot be

Loan Against PPF Scheme

Procedure to Withdraw PPF Money

The procedure for withdrawing from a PPF

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