Points of Difference | Sukanya Samriddhi Account (SSA) | Public Provident Fund (PPF) |
For whom | Only for Girl Child. | For every Indian Citizen. |
Age Limit | From the birth till she attains age of 10 years. | No age limit. |
By whom | By the girl child who has attained the age of 10 years or by the natural or legal guardian. | By the Individual but by the natural or legal guardian for the minor child. |
Where to open | Post office and nationalized banks but not private banks. | Post office and nationalized banks, including private banks. |
Number of Account | One account for each girl child, maximum up to 2 or 3 accounts if twin girls are born in the second birth or triplets are born in the first birth. | Each Individual can hold only one account in his name. |
Minimum Contribution | Rs.1,000 | Rs.500 |
Maximum Contribution | Rs.1.5 lakhs in all accounts. | Rs.1.5 lakhs in all accounts. |
Interest Rate | 9.2% per annum for fiscal year 2014-15. | 8.70% per annum for fiscal year 2014-15. |
Tax Benefit on the Contribution | Contributed Amount will be deductible u/s 80C. | Contributed Amount will be deductible u/s 80C. |
Tax Benefit on the interest earned | At present no tax benefit is announced for the interest earned. A mere sum of Rs.1,5o0 will be deductible u/s 10(32) . | Interest Earned is tax free under PPF. |
Time Period of contribution | Minimum tenure of contribution is 14 years from the date of opening of account. | Minimum 15 years and then in blocks of 5 years. |
Maturity | 21 years from the date of opening of account. | 15 years from the fiscal year of opening of account. |
Penalty | Rs.50 per year if minimum contribution is not made. | Rs.50 per year if minimum contribution is not made. |
Mode of Deposit | Cash or Demand Draft or Cheque | Cash or Demand Draft or Cheque |
Premature Withdrawal | Allowed up to 50% for the girl’s higher education and marriage after she attains 18 years of age | No premature withdrawal is allowed except in case of death of the account holder. |
Loan | No loan can be taken on the SSA balance. | Loan can be taken from the third year of opening of account to the sixth year. |
Taxation on Maturity | No tax will be levied on the maturity amount. | No tax will be levied on the maturity amount. |
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