The Prime Minister recently launched the Sukanya Samridhi account scheme under his ‘beti bachao beti padhao campaign’ for the benefit of the minor girl child.
Deduction under section 80C – A minimum amount of Rs 1,000 must be deposited each year in this account. A maximum Rs 1,50,000 can be invested in each financial year. The amount deposited in this account shall be eligible for deduction under section 80C. This is included within the overall limit of Rs 1,50,000 of Section 80C.
Interest Income is fully exempt – The amount deposited shall earn an interest @ 9.1% annually (for the financial year 2014-15).
The Finance Minister announced in the Budget for 2015 that interest earned in a Sukanya Samriddhi Account shall be fully tax free.