Sukanya Samriddhi Yojana Under 80C

If you’re planning for your daughter’s future and want to save on tax, the scheme called Sukanya Samriddhi Yojana (SSY) is one of the top picks. In simple terms: you open an account in your girl child’s name, invest regularly, claim deduction under Section 80C of the Income-Tax Act, and the interest plus maturity proceeds are tax-free.

What is it & why it matters

Under SSY:

• You can invest up to ₹1.5 lakh per financial year and claim that full amount under Section 80C (old tax regime) for deduction.
• The interest rate (as of 2025) is around 8.2% p.a., compounded annually.
• Both the interest earned and the maturity amount are tax-free (EEE status: exempt on investment, exempt on interest, exempt on withdrawal).
• It’s designed for your girl child (below 10 years at the time of opening) and is meant to build corpus for education/marriage.

Eligibility, Limits & Conditions

• The account must be opened in the name of a girl child aged under 10 years.
• Minimum deposit: ₹250 per year. Maximum eligible for deduction: ₹1.5 lakh per year.
• Once opened, you must invest for a certain period: the account matures after 21 years from opening or on marriage of the girl (whichever earlier).
• Note: The deduction under 80C is available only if you are under the old tax regime.

Real-Life Scenario

Let’s say you open an SSY account for your daughter when she is age 5 and you invest ₹1.5 lakh every year for, say, 15 years at ~8.2% interest. By the time she’s ready for higher studies or marriage, the corpus will have grown nicely — all while you claimed tax deduction every year under Section 80C. And the best part: no tax on interest, no tax on the final amount you withdraw.