Have a girl child? Learn how to claim tax deductions on Sukanya Samriddhi Yojana contributions

Sukanya Samriddhi Yojana is a Government of India savings scheme for girl children below 10 years of age. Annual deposits up to ₹1.5 lakh qualify for Section 80C deduction under the old tax regime. The interest, notified quarterly by the Ministry of Finance, is compounded annually and is fully tax-free, and the maturity proceeds are exempt under Section 10(11A). SSY thus enjoys full triple-exempt (EEE) status, making it among the most tax-efficient products for funding a girl child's education and marriage.

Priyanka Wadhera

Published: 3 Feb 2023

Updated: 16 May 2026

4 min read

Sukanya Samriddhi Yojana (SSY) is the Government of India's flagship long-term savings programme dedicated to the welfare of girl children under 10 years of age. Launched under the Beti Bachao Beti Padhao initiative and operated through India Post and authorised banks, SSY combines the highest sovereign interest rate among Section 80C instruments with full triple-exempt (EEE) tax treatment. For FY 2026-27, parents and legal guardians of eligible girl children should treat SSY as the bedrock of long-term planning for higher education and marriage.

Account opening conditions

Eligible: girl child aged below 10 years on the date of account opening.
Opened by: natural or legal guardian of the girl child.
Maximum two accounts per family, one per girl child; exception for twins or triplets where a third account is permitted.
Minimum annual deposit: ₹250.
Maximum annual deposit: ₹1.5 lakh, aligned with the Section 80C ceiling.
Branches: any India Post branch or designated authorised commercial bank.

Tenure and contribution rules

The SSY account has a 21-year operational tenure from the date of opening or until the marriage of the girl child after she attains 18 years, whichever is earlier. Contributions must be made for the first 15 years from account opening. From year 16 to year 21, no deposits are required, and the existing balance continues to compound at the prevailing rate. Up to 50 per cent of the balance can be partially withdrawn after the girl turns 18 for higher education or marriage.

Section 80C deduction

Deposits in SSY qualify for Section 80C deduction up to ₹1.5 lakh per financial year, aggregated with other 80C investments. The deduction is available only under the old tax regime. Either parent can be the guardian, but the deduction is claimed by the parent who actually deposits the money from their taxable income — a planning tool to use the higher-income spouse's higher tax slab. SSY does not qualify for any income-tax benefit under the new tax regime.

Tax-free interest and maturity

Interest on SSY is compounded annually at the rate notified quarterly by the Ministry of Finance — historically the highest among Section 80C-eligible products. Both the annual interest accrual and the final maturity proceeds are fully exempt from income tax under Section 10(11A). This grants SSY full triple-exempt status (EEE) — exempt on contribution, accumulation, and withdrawal — placing it alongside PPF and EPF as the most tax-efficient savings vehicles in India.

Worked example

Suppose you open SSY for your 6-year-old daughter and contribute ₹1.5 lakh annually for 15 years. Assuming an average rate of around 8 per cent compounded annually, the corpus at the end of year 21 can grow to a meaningful sum — entirely tax-free. Under the old regime, the ₹1.5 lakh deposit each year saves up to ₹46,800 in tax in the 30 per cent slab, effectively reducing the saver's out-of-pocket contribution to roughly ₹1.03 lakh.

Reporting in the ITR

Claim the annual deposit under Section 80C in the ITR for the relevant assessment year.
Report SSY interest under Schedule EI (Exempt Income) for completeness.
On premature partial withdrawal at age 18 or maturity at 21, report receipts under Schedule EI.
Maintain the SSY passbook, deposit receipts, and an annual interest chart for at least 8 years.
Operationalise the deposit in early April each year to capture interest for the full year.

Premature closure and discontinuation

Premature closure is allowed only in specified circumstances — death of the girl child, life-threatening medical conditions of the account holder, or death of the guardian. Accounts that become discontinued due to non-deposit of the minimum ₹250 in a year can be revived by paying a small penalty along with the missed minimum contribution.

Conclusion

Sukanya Samriddhi Yojana is the single most rewarding small savings product available for a girl child in India. The combination of the highest sovereign-backed interest rate among 80C products, full EEE tax treatment, and the disciplined 15-year contribution horizon makes it ideal for funding higher education and marriage. Open the account immediately upon eligibility, contribute consistently, and use it as the foundation of the girl child's long-term financial future.

Frequently Asked Questions

Who is eligible to open a Sukanya Samriddhi Yojana account?

A natural or legal guardian can open an SSY account for a girl child below 10 years of age. A family can open up to two accounts, one per girl child, with an exception for twins or triplets. Accounts are opened at India Post branches and designated commercial banks across India.

What is the minimum and maximum deposit in SSY?

The minimum annual deposit in SSY is ₹250 and the maximum is ₹1.5 lakh, aligned with the Section 80C ceiling. Contributions must be made for the first 15 years from account opening. From year 16 to 21, no further deposits are required, and the balance continues to earn interest at the prevailing rate.

Is SSY interest taxable in any way?

No. Interest on SSY is fully exempt from income tax under Section 10(11A). Both the annual accrual and the final maturity proceeds are tax-free, irrespective of the tax regime chosen. Combined with the Section 80C deduction on contributions under the old regime, SSY enjoys full triple-exempt (EEE) status.

Can SSY be claimed under the new tax regime?

The Section 80C deduction on SSY contributions is available only under the old tax regime. Under the new tax regime, which is default for FY 2026-27, the 80C benefit cannot be claimed. However, the tax-free status of SSY interest and maturity under Section 10(11A) continues to apply regardless of the regime chosen.