4 major Income tax benefits given to Sukanya Samriddhi Account subscribers

New Delhi: Post Office savings schemes are one of the safest options for traditional investors who don't want to take much market risk and are dependent on a fixed interest rate.

Additionally several Post Office savings schemes also offer Income tax benefits to its subscribers --one such being the Sukanya Samriddhi Account (SSA)​.

Income tax benefits on Sukanya Samriddhi Account (SSA)​

The Sukanya Samriddhi Account gives major tax benefits to the subscribers. Here are four prominent ones: 

1. Investments made in Sukanya Samriddhi Account are eligible for tax deductions under Section 80C of the IT act.

2. Deduction of up to a limit of Rs 1.5 lakh is allowed annually on Sukanya Samriddhi Account.

3. The interest that accrues against this account which gets compounded annually is also exempt from tax under Section 10 of the Income Tax Act.

4. The proceeds received upon maturity/withdrawal are also exempt from income tax.

Sukanya Samriddhi Account can be opened in the name of a girl child till she attains the age of 10 years. Account can be opened in Post offices and notified branches of commercial banks. The rate of interest on Sukanya Samriddhi Account is 7.6​​% Per Annum (with effect from 01-04-2020), calculated on yearly basis ,Yearly compounded. Account can be opened with a minimum of Rs 25​0 and Maximum Rs 1,50,000 in a financial year. Subsequent deposit in multiple of Rs 50. Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial year