invest in Sukanya Samrudhi Yojana or PPF for your daughter’s future. If you invest till July 30, you will get the benefit of tax exemption.
- The PPF account is earning 7.1 per cent interest
- Sukanya Samrudhi Yojana is earning 7.6 per cent interest per annum
It is the responsibility of all parents to make their children’s future bright. It is necessary to invest in the right place keeping in view the expenses incurred on the marriage or study of the children. If you want to invest for your daughter in a place where your money is safe and you also get the benefit of tax exemption, you can invest in Sukanya Samrudhi Yojana or Public Provident Fund (PPF). Today we are telling you about both these schemes so that you can invest in the right place according to your need.
Special matters connected with Sukanya Samrudhi Yojana
- The scheme can be opened anywhere in a bank or post office. Sukanya Samrudhi Yojana is currently earning 7.6 per cent annual interest.
- An account can be opened for only Rs 250. Under Sukanya Samrudhi Yojana, you can open an account before the age of 10 after the birth of a child.
- The account will mature after the girl turns 21 or the girl gets married and you will get all the money including interest.
- The account can be closed up to 5 years after opening. This can happen in many cases, such as due to a serious illness or the account being closed for any other reason, it can be allowed, but on an interest saving account basis. Will get
- The Sukanya Samrudhi Yojana account can be used to withdraw up to 50 per cent of the cost of higher education for a child after the age of 18.
- In order to open an account, it is necessary to give the birth certificate of the child. In addition, proof of identity and address of the child and parents has to be given.
- This account can be transferred anywhere in the country. But the account holder has moved from the original place of account opening to another place. You do not have to pay any fees for it.
- If the account is being closed before the completion of 21 years, the account holder has to give an affidavit that at the time of closing the account, he is not less than 18 years of age.
- Under Sukanya Samrudhi Yojana in the current financial year, up to Rs 1.5 lakh can be invested in this account in a year.
- The benefit of tax exemption under Section 80C of the Income Tax Act can be availed on investing money under Sukanya Samrudhi Yojana.
Special things about PPF
- The scheme can be opened anywhere in a bank or post office. It can also be transferred to any bank or any post office.
- It can be opened for only Rs 100, but then a deposit of Rs 500 is required once a year. A maximum of Rs 1.5 lakh can be deposited in this account every year.
- The scheme is for 15 years, which cannot be stopped in between. But it can be extended for 5-5 years after 15 years.
- It cannot be closed before 15 years, but after 3 years you can take a loan instead of this account. If anyone wants, he can withdraw money from this account from the 7th year under the rules.
- The government reviews interest rates every three months. Interest rates can be higher or lower. The account is currently earning 7.1 per cent interest.
- The benefit of tax exemption under 80C can be availed by investing Rs 1.5 lakh in these schemes.
- Where to invest?
- Income tax can be avoided by investing in both the places. In addition, both schemes have their own merits and demerits. If your daughter is less than 10 years old then it would be appropriate to invest in Sukanya Samrudhi Yojana as here you will get more interest than PPF. Also, if your daughter is over 10 years old, you can invest in PPF.