Sukanya Samriddhi Yojana (SSY) account- Partial Withdrawal and Premature Closure

Scheme for small deposits Sukanya Samriddhi Yojana (SSY) allows a girl child to withdraw money from her account only when she reaches the age of 18 or completes the 10th standard of education. The Sukanya Samriddhi Account (SSA) allows for partial withdrawals of up to 50% of total savings available at the end of the previous fiscal year.
The withdrawal can be made in one lump sum or in instalments over a period of up to five years. The withdrawal amount cannot exceed 50% and will be subject to any applicable fees or charges. The closure or maturity period is reached after 21 years from the date of account opening or at the time of marriage of the girl child after reaching the age of 18. It should be one month before or three months after her wedding date.
Sukanya Samriddhi Yojana, backed by the government, was launched as part of the government's 'Beti Bachao Beti Padhao' campaign. A small deposit scheme can be established for a girl child to assist her in meeting her financial needs, such as education and marriage. The scheme currently offers an annual interest rate of 7.6 percent.

In a fiscal year, the account can be opened with a minimum of Rs 25,000 and a maximum of Rs 150,000. Deposits in multiples of Rs 50 are accepted. Deposits in lump sums are also possible. There is no monthly or fiscal year limit on the number of deposits that can be made. Furthermore, the scheme provides tax advantages under Section 80C of the Income Tax Act. Section 10 of the IT Act exempts account interest from income tax. If certain conditions are met, the scheme also allows for early closure after 5 years from the date of account opening. The guardian will manage the account until the girl child reaches the age of majority, which is 18 years.

Premature closure

If the account holder dies, the account is immediately closed, and the remaining balance, plus any accrued interest, is paid to the account holder's guardian. The amount held in the Sukanya Samriddhi Account will earn interest at the same rate as post office savings accounts from the date of death until the account is closed.

Tax Benefits-

Investments in the SSY scheme are eligible for Section 80C deductions, up to a maximum of Rs 1.5 lakh.
Section 10 of the Income Tax Act exempts from tax the interest that accrues on this account and is compounded annually.
The proceeds received upon maturity/withdrawal are also tax-free.