Let's see if a wife or husband can avail tax benefits under Sukanya Samriddhi Yojana scheme
26-Dec-2022 •Ravi Banagere
I've opened Sukanya Samriddhi account for my daughter in my bank account. Instead of me contributing to it, can my wife contribute to the account and avail the 80C tax benefits? - Anonymous
Yes, the spouse is eligible to claim the Sukanya Samriddhi Yojana tax benefits.
While tax deductions for investments in the scheme are allowed, only one depositor may be excluded from paying taxes under Section 80C of the Income Tax Act. This indicates that just one of the two parties - a parent or a legal guardian - may request an exemption. Therefore, even if the father opened the account, the mother (parent) can still receive the Sukanya Samriddhi Yojana tax benefits if she contributes in the scheme.
Tax model of Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana scheme has the exempt-exempt-exempt (EEE) model, where the deposits, the interest earned as well as the maturity amount are tax-free. Section 80C of the tax code allows for a tax deduction of up to Rs 1.5 lakh on the amount invested in the scheme. On maturity, the entire amount is tax-free, including the interest.
However, it should be noted that only parents or legal guardians are eligible to claim the tax benefit under the Sukanya Samriddhi Yojana scheme. Grandparents or in-laws cannot claim the tax benefit even if they invest in the scheme.
Sukanya Samriddhi Yojana (SSY) in brief
The government launched Sukanya Samriddhi Yojana scheme just for girls. This plan encourages parents to start saving money towards the financial goals of their girl child. One can apply for SSY through post offices as well as public and private sector banks. The account can be opened by a parent or legal guardian of the girl child. The minimum and maximum annual investments are Rs 250 and Rs 1.50 lakh, respectively. Learn more about Sukanya Samriddhi Yojana scheme.
When can I withdraw from Sukanya Samriddhi Yojana?
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