Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme for the girl child, offering attractive interest rates and tax benefits. Parents can open the account anytime before the girl turns 10. It provides tax deduction under Section 80C, tax-free interest, and tax-free maturity, making it ideal for securing her future.
Tax Benefits Overview
- EEE Status (Exempt–Exempt–Exempt)
- Exemption on deposit: Contributions up to ₹1.5 lakh in FY24‑25 qualify for deduction under Section 80C
- Interest income: Fully tax‑exempt under Section 10; credited annually .
- Maturity proceeds: Entire corpus (principal + interest) is tax-free .
✅ Eligible Deposit Range
- Minimum: ₹250 per FY
- Maximum: ₹1.5 lakh per FY
💰 Interest Rate for FY 2024‑25
The rate was 8.2% p.a., for all quarters from April 1, 2024 to March 31, 2025.
✨ Why It’s Great in FY 2024‑25
- Offers one of the highest returns among small‑savings schemes (fixed 8.2%)
- Allows full 80C deduction while earning tax‑free interest
- No tax on withdrawals makes it ideal for child’s future expenses, whether for education or marriage
✅ Summary Table
| Benefit Type | Description |
|---|---|
| Deduction under 80C | Up to ₹1.5 lakh on deposits |
| Interest exemption | Fully tax‑free annually |
| Maturity proceeds | Entire amount tax‑free |
| Interest rate (FY24‑25) | 8.2% p.a. compounded annually |
🔎 Additional FY 2024‑25 Notes
- The EEE structure applies throughout; no retrogression in tax status
- Ensure deposits don’t exceed ₹1.5 lakh in the fiscal year; any excess earns no interest and is withdrawable
- Contributions are valid up to 15 years from account opening; maturity occurs after 21 years
✅ Bottom Line
For FY 2024‑25, SSY offers superb tax advantages: you save tax today (via Section 80C), enjoy tax‑free growth, and receive the maturity corpus fully tax‑exempt—all with a competitive 8.2% interest rate. A smart, long‑term vehicle for your daughter’s future.
1. Is the amount deposited in Sukanya Samriddhi Yojana eligible for tax deduction?
✔️ Yes, deposits made under SSY qualify for deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per financial year.
2. Is the interest earned on Sukanya Samriddhi Yojana taxable?
✔️ No, the interest earned is completely tax-free, as per Section 10 of the Income Tax Act.
3. Are the maturity proceeds from SSY taxable?
✔️ No, the entire amount received on maturity, including principal and interest, is fully tax-exempt.
4. What is the interest rate applicable on SSY for FY 2024-25?
✔️ The interest rate is 8.2% per annum, compounded annually.
5. Can both parents claim tax benefits for SSY deposit?
✔️ No, only one parent or legal guardian can claim the Section 80C deduction for the amount deposited.
6. What is the maximum amount eligible for tax deduction under SSY?
✔️ The maximum eligible amount is ₹1.5 lakh per financial year under Section 80C, including other eligible investments.
7. Is there any tax benefit if I deposit more than ₹1.5 lakh in SSY?
✔️ No, deposits beyond ₹1.5 lakh are not eligible for tax benefits and will not earn interest.
8. Can SSY tax benefits be claimed under the new tax regime?
✔️ No, SSY tax benefits under Section 80C are not available if you opt for the new tax regime under Section 115BAC.
9. Are partial withdrawals from SSY taxable?
✔️ No, even partial withdrawals permitted under the scheme (for education after age 18) are tax-free.
10. Can I claim tax benefits for SSY if the account is opened for a second daughter?
✔️ Yes, SSY accounts can be opened for up to two girl children, and tax benefits can be claimed for both within the ₹1.5 lakh overall limit under Section 80C.