Sukanya Samriddhi Yojana - Girl Child's Deposit Scheme

Sukanya Samriddhi Yojana (SSY) is deposit scheme especially launched for the girl child and this scheme called in Hindi 'Beti Bachao Beti Padhao'. The scheme main object is girl child parents to build a fund for the future education and marriage expenses of their female child. 

This scheme currently rate of interest 8.5% Per Annum higher interest of other deposits schemes.

This scheme also provides the income-tax benefit under section 80 C up to 1.5 Lakhs of the Income Tax Act,1961. Even the returns are tax free in the scheme. 

Salient features including Tax Rebate

• A legal Guardian/Natural Guardian can open account in the name of Girl Child.

• A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children.

• Account can be opened up to age of 10 years only from the date of birth. For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 &1.12.2004 can open account up to 1.12.2015.

• If minimum Rs 1000/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.

• Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.

• Account can be closed after completion of 21 years.

• Normal Premature closure will be allowed after completion of 18 years /provided that girl is married.

The following Authorized banks which can open Sukanya Samriddhi Account

State Bank of India
State Bank of Mysore
State Bank of Hyderabad
State Bank of Travancore
State Bank of Bikaner & Jaipur
State Bank of Patiala
Vijaya Bank
United Bank of India
Union Bank of India
UCO Bank
Syndicate Bank
Punjab National Bank
Punjab & Sind Bank
Oriental Bank of Commerce
Indian Overseas Bank
Indian Bank
IDBI Bank
ICICI Bank
Dena Bank
Corporation Bank
Central Bank of India
Canara Bank
Bank of Maharashtra
Bank of India
Bank of Baroda
Axis Bank
Andhra Bank
Allahabad Bank

Opening of SSY account

A parent or guardian can open only one account per girl child, and a maximum of two such bank accounts in the name of two girl children.

In case twin girls are born on the second birth, or if the first birth itself results in the birth of three girl children, three bank accounts can be opened in the name of three girl children.

To open an account under the Sukanya Samriddhi Yojana, three documents are required:

1) Certificate of birth of the girl child provided by the hospital where the child is born or even a certificate provided by a government official.

2) Address proof of the parents or legal guardian of the girl child-- could be any one like passport, driving license, electricity or telephone bill, voter ID card, ration card or any other address proof issued by the Government of India.

3) Identity proof of the parents or legal guardian-- documents like PAN card, driving license, passport, voter ID card or matriculation certificate would be valid as an identity proof for opening the account.

An account once opened can also be transferred anywhere in India.

Yes, the account can be transferred anywhere in India if the girl child in whose name the account has been opened shifts to a place other than the city or locality where the account stands. 

The transfer is free of cost on furnishing the proof of shifting of residence of either the parent/guardian or account holder. If no such proof is submitted then the applicant has to pay Rs 100 to the post office or the bank to which the transfer is made. 

Can the account be opened in the name of an NRI girl child? 

A girl child is eligible for an SSY account only if she is a resident Indian citizen when the account is opened, and remains so until the maturity or the closure of account. 

Non-resident Indians can no longer open an SSY account. In fact, if you or your child's residential status changes to non-resident or she takes up another country's citizenship during the term of the scheme, no interest shall be paid from the date of citizenship or residential status changes and the account will be considered closed.

Minimum deposit to be made under the scheme

The minimum deposit that needs to be made in the Sukanya Samriddhi Account every year was Rs 1,000 which has been slashed to Rs 250.

The maximum amount that can be deposited in a year is Rs 1.5 lakh. There is no limit on the number of deposits either in a month or in a financial year.

In case the required minimum annual deposit is not made by a parent or a guardian, the account will cease to be active. In such a situation, the account can be reactivated by paying a penalty of Rs 50 per year along with the minimum amount required for the deposit for that year.

Maturity of Sukanya Samriddhi Account

The account will be valid for 21 years from the date of opening, after which it will mature and the money will be paid to the girl child in whose name the account had been opened.

If the account is not closed after maturity, the balance amount will continue to earn interest as specified for the scheme from time to time. The account will also automatically close if the girl child gets married before the completion of the tenure of 21 years.

Deposits can be made up to 14 years from the date of opening of the account. After this period the account will only earn interest as per applicable rates.

Premature withdrawal

Withdrawing money before the completion of the maturity period of 21 years can only be made by the girl child in whose name the account has been opened after she attains the age of 18 years.

This withdrawal will also be limited to 50 per cent of the balance standing at the end of the preceding financial year, and will only be allowed for the purpose of higher education or if the girl intends to get married.

It is also worthy to note that in order to make a withdrawal, the account should have a deposit of at least 14 years or more.

Closing account prematurely

The account can be prematurely closed only under two conditions:

1. In case of the unfortunate death of the girl child (account holder), the parent or legal guardian can claim for the accumulated amount along with the interest incurred on the account. The balance would be immediately handed over to the nominee of the account.

2. The second condition under which the account can be prematurely closed is when the competent authorities feel and confirm that it is not possible for the depositor to carry forward the account or the contributions made towards the account are causing undue hardships to the depositor.

Conclusion:

The scheme is provide a good rate of interest of long term deposit for your girl child. Here, I have share your interest calculator link : https://www.sukanyasamriddhiaccountyojana.in/ssay-calculator/ . 

I hope that you will plan and open a account for your girl child saving fund for their higher educations and marriage as soon.

Multiple place of business within the state or union territory GST separate registration required

This amendment is comes to effect from 1st February, 2019.

A person who is having multiple places of business can obtain a separate registration for each place of business and the conditions prescribed under rule 11 of the Central Goods and Service Tax Rules, 2017 needs to be fulfilled.

The provision of substituted rules 11 as under :

• A person who is doing the multiple places of business within a State or a Union territory shall be granted a separate registration required. 

• A person should have more than one place of business as defined in section 2 (85).
• A person who is willing to obtain separate registration should not be availing the benefit of composition scheme.
• In case of inter-unit supply transactions (i.e. supply by one registered unit to another registered unit) of the goods or services or both, the same shall be treated as regular supply. The registered person is required to issue tax invoice and pay applicable tax on the same.

• The registered person who is willing to obtain the separate registration for a place of business is required to submit an application in FORM GST REG-01 in respect of such place of business.

Transfer of Input tax credit on obtaining separate registration for multiple places of business within a state or a Union territory

New rule 41A has been inserted into the Central Goods and Service Tax Rules, 2017, vide the Central Goods and Service Tax (Amendment) Rules, 2019 effective from 1st February, 2019. 

Which deals with the provisions relating to the transfer of input tax credit in case of the registered person who has obtained a separate registration for the multiple places of business within a State or Union Territory.

The rule 41A applicable to -

A registered person who has obtained a separate registration for multiple places of business and intends to transfer the unutilized input tax credit lying in electronic credit ledger to the new registered unit;

Action to be taken by the registered person for transferring the input put credit to the new registration 

• The registered person is required to furnish details in FORM GST ITC-02A within a period of 30 days from the date of obtaining separate registration.

• FORM GST ITC-02A can be submitted either electronically through the common portal or through a Facilitation Centre notified in this behalf.

Calculation of Input tax credit to be transferred to new registered unit

The input tax credit can be transferred to the new registered unit in the ratio of the value of an asset which is being held by it at the time of obtaining the registration.

Action to be taken by the New registration unit - 

Once the application in FORM GST ITC-02A is filed by the registered person, the new registered unit is required to accept the details and upon acceptance the input tax credit balance as specified in FORM GST ITC-02A would be credited to the electronic credit ledger of the new registered unit.

Capital gain benefit in budget 2019-20 for sales of residential house property

The budget 2019-20 big helpful for tax saving on sale of residential house property under section 54 of Income tax Act, 1961.

The taxpayer purchase the two residential houses property and avail the maximum tax exemption up to 2 Cr and this benefit would be availed once in a life time.

Let we have see how to help reduce the tax in capital gain tax for proposed amendment FY 2019-20.

Present Budget FY 2018-19
Particulars	Amount in INR.
Sale consideration value	2,00,00,000.00
Less: Index cost of Acquisition of property	(70,00,000.00)
Gross taxable Capital Gains	1,30,00,000.00
Less: Exemption u/s 54 New House1: 80,00,000 New House2: Not Applicable for this year and invest one  residential house property only	(80,00,000.00)
Capital Gain Chargeable to Tax	50,00,000.00

Proposed Budget FY 2019-20 (effect from 01.04.2019)
Particulars	Amount in INR.
Sale Proceeds	2,00,00,000.00
Less: Index cost of Acquisition	(70,00,000.00)
Capital Gains	1,30,00,000.00
Less: Exemption u/s 54 New House1: 80,00,000 New House2: 50,00,000	(1,30,00,000.00)
Capital Gain Chargeable to Tax	NIL

Budget 2019-20 : Highlights in Direct Taxes

1. The previous year rate of income tax slab will continue for the financial year of 2019-10.

Let have we see the following Income Tax slab rates.

i) Who is the age less than 60 years slab rate for - Individual /HUF /AOP /BOI / Non- resident:

Income range	Income tax rate
Upto Rs. 2,50,000	Nil
Rs. 2,50,000 to Rs. 5,00,000	5%
Rs. 5,00,000 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

ii) Who is the age more than 60 year but less than 80 years slab rate for - Individual /HUF /AOP /BOI / Non- resident:

Income range	Income tax rate
Upto Rs. 3,00,000	Nil
Rs. 3,00,000 to Rs. 5,00,000	5%
Rs. 5,00,000 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

iii) Who is the age more than 80 years  - Individual /HUF /AOP /BOI / Non- resident:

Income range	Income tax rate
Upto Rs. 5,00,000	Nil
Rs. 5,00,000 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

iv) For others Category 

Firm	30%
Domestic Company (if turnover in previous year 2016-17 is upto Rs. 250 crore)	25%
Domestic Company (if turnover in previous year 2016-17 exceeds Rs. 250 crore)	30%
Foreign Company (some specified transactions with Government)	50%
Other Foreign Company	40%

2. No changes in surcharges. When surcharge is levied and that details as under:

Particulars	Rate of Surcharge
	Exceeds INR.50 Lakhs to 1 Cr	Exceeds INR. 1 Cr to 10 Cr	Exceeding INR. 10 Cr
Individual/HUF/AOP/BOI	10%	15%	15%
Firm	Nil	12%	12%
Domestic Company	Nil	7%	12%
Foreign Company	Nil	2%	5%

3. Amendments proposed in Financial Bill, 2019 and this amendments applicable from 1st April 2019. Shall we have see about the comparative analysis of current law vs amendment financial bill 2019.

Section of Income tax Act,1961	Current Law	Amendment proposed in Finance Bill, 2019
Section 16	Under Income chargeable under the head salaries, there is standard deduction of INR. 40,000 in lieu of transport allowance and medical reimbursement of INR.15,000 or the amount of salary, whichever is less.	Standard deduction of INR.40,000 is increased to INR.50,000.
Section 23	If there is more than one self-occupied property, the annual value of one house property is taken to be Nil and the other property is deemed to be let out.	There is no notional tax on two self-occupied properties
Section 54	There is exemption on capital gains in case all following conditions are satisfied: 1. The property is residential house property 2. The property is transferred by any Individual or HUF 3. The gain arises from transfer of property is long term capital asset 4. A new house property is purchased within a period of one year before transfer or within two year after the date of transfer 5. A house property is constructed within a period of 3 years from the date of transfer	If capital gain does not exceed two crore, an assessee can purchase or construct two residential house. Earlier the exemption on capital gain was available only for one house property. However, this exemption can be availed only once in a life time.
Section 80-IBA	There is 100% Deduction in respect of profits derived from housing projects, if following conditions are satisfied: 1. The project is approved by competent authority after 01st day of June 2016 but on or before 31st day of March 2019 2. The project is completed within a period of 5 years from the date of approval 3. Other condition relates to location, size of project etc.	If the project is approved before 31st day of March 2020, then also deduction is available. In other words, to make homes available under affordable housing, the benefit is extended for one more year.
Section 87A	If the total income of an individual resident does not exceed Rs. 3,50,000, there is deduction of Rs. 2500 or 100% of Income tax whichever is less.	Now, if income does not exceed Rs.5,00,000, there is deduction of Rs. 12,500 or 100% of Income tax whichever is less. Therefore, if taxable annual income of an assessee is upto Rs.5,00,000, he shall not pay any tax but if Income exceeds Rs.5,00,000 then slab rate shall be applicable.
Section 194A	If any income is credited to an Individual or HUF by way of Interest other than interest on securities, tax is to be deducted @ 10%. However, no tax is to be deducted if: 1. Income does not exceed Rs. 10,000 where interest is paid by any banking company, co-operative society engaged in banking business, post office. 2. Income does not exceed Rs. 5,000 in any other case.	The exemption limit is now increased from Rs.10,000 to Rs.40,000, if interest is credited by banking company or post office. However, if interest is credited by any other, the limit is Rs.5,000 only.
Section 194-I	If rent is payable by any person exceeding Rs. 1,80,000, tax is to be deducted @ 2% if plant or machinery is being given on rent and 10% if land, building or furniture is being given on rent	The limit is increased from Rs.1,80,000 to Rs.2,40,000