8 March 2017

SUKANYA SAMRIDDHI

SUKANYA SAMRIDDHI ACCOUNT YOJANA – Beti Bachao Beti Padhao 1

Sukanya Samriddhi Yojana Account is basically a Girl Child Prosperity Account, Its a Government of India backed saving scheme targeted at the parents of girl children. The scheme encourages parents to build a fund for the future education and marriage expenses for their female child.
The scheme was launched by Prime Minister Narendra Modi on 22 January 2015 as a part of the Beti Bachao, Beti Padhao campaign. The scheme currently provides an interest rate of 9.2% and tax benefits. The account can be opened at any India Post office or a branch of some authorised commercial banks.
Initially, the interest rate was set at 9.1% but later revised to 9.25 in late March 2015.
Eligibility Condition for Sukanya Samriddhi Account

The account can be opened by the natural or legal guardian in the name of a girl child from the birth of the girl child till she attains the age of 10 years
A depositor can open and operate only one account in the name of a girl child under the scheme rules
Natural or legal guardian of a girl child can be allowed to open the account for two girl children only.
The third account in the name of the girl child can be opened in the event of birth of twin girls, as second birth or if the first birth itself results into three girl children

Documentation for Sukanya Samriddhi Account

SSY Account Opening Form
Birth Certificate of girl child
Identity proof (as per RBI KYC guidelines)
Residence proof (as per RBI KYC guidelines)

Benefits of Sukanya Samriddhi Account

Tax Exemption – Investment in Sukanya Samriddhi Yojana scheme is exempted from Income Tax under section 80C. The scheme offers Tax Benefit under TripleE regimen ie. Principal, interest and outflow all are tax exempted.
At the time of launch, only the deposits in the account were eligible for tax deduction under Section 80C of the Income Tax Act, which is 1,50,000 in 2015-16. However, Finance Minister Arun Jaitley announced, during the 2015 Union Budget, tax exemption on the interest from the account and on withdrawal from the fund after maturity, making the tax benefits similar to that of the Public Provident Fund. These changes were applied retrospectively from 1 April 2015. These benefits will be reassessed annually
Withdrawal Facility -To meet the financial requirements of the account holder for the purpose of higher education and marriage, account holder can avail partial withdrawal facility after attaining 18 years of age

Features of Sukanya Samriddhi Account

Attractive interest rate of 9.2%. Interest rate calculated on yearly basis ,Yearly compounded is regulated by Ministry of Finance from time to time
Minimum Rs. 1,000 can be invested in one financial year
Maximum investment of Rs. 1,50,000 can be made in one financial year
Subsequent deposit in multiple of INR 100/- Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial year
If the minimum deposit is not made in a year, a fine of 50 will be levied.
Deposits in an account can be made till completion of 14 years, from the date of opening of the account
The account shall mature on completion of 21 years from the date of opening of the account, provided that where the marriage of the account holder takes place before completion of such period of 21 years, the operation of the account shall not be permitted beyond the date of her marriage
The account can be opened anytime between the birth of a girl child and the time she attains 10 years age by the guardian. Only one account is allowed per child. Parents can open a maximum of two accounts for each of their children (exception allowed for twins and triplets). The account can be transferred to anywhere in India.
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.
Scheme Matures in 21 years or on Girl’s Marriage, whichever is earlier – The girl can operate her account after she reaches the age of 10. The account allows 50% withdrawal at the age of 18 for higher education purposes. The account reaches maturity at the age of 21. If the account is not closed, then it will continue to earn interest at the prevailing rate. If the girl is over 18 and married, normal Premature closure is allowed
If account is not closed after maturity, balance will continue to earn interest as specified for the scheme from time to time.
Nomination Facility – Nomination facility is not there with this scheme. In an unfortunate event of the death of the girl child, the balance amount will be paid to the parents/ legal guardian of the girl child and the account will be closed immediately.

So, here you have the tables in which maturity values are given as per your annual contributions as well as monthly contributions:
Yearly Contribution Table

SUKANYA SAMRIDDHI ACCOUNT YOJANA - Yearly Contibution

Monthly Contribution Table

SUKANYA SAMRIDDHI ACCOUNT YOJANA - Monthly Contribution

Note for Above calculation:

Rate of Interest has been assumed to remain 9.2% for all these 21 years.
Yearly contributions have been assumed to be made on April 1 every year i.e. the beginning of the financial year.
Monthly contributions have been assumed to be made on 1st day of every month.
It is also assumed that no withdrawal is made throughout these 21 years.

LIC Jeevan Sukanya policy Conditions

Sum Assured : Minimum – 30,000 /- upto 31/05/2004
Maximum – 50 Lakhs

Minimum – 50,000/- from 01/06/2004
Maximum – 50 Lakhs
Child Entry age : Minimum – 0 years
Maximum – 12 years
Maturity age : Minimum – 20 years age attaining
Maximum – 45 years age attaining
Premium paying term : Minimum: 15 years
Maximum: 35 years
premium payment mode : Yearly, Half Yearly, Quarterly,Monthly

No medical examination is required if age of the child is less than 10 yrs.
Form no 340 + medical report of children of age 10 years and above is compulsory.
Standard lives with overweight up to 50% are acceptable.

Standard Male & female lives (cat I & II ) with earned income are acceptable as

proposer for supplementary benefits.

LIC Jeevan Sukanya Policy Rebates

Rebates are divided into 2 types

sum assured rebate and
mode rebate (premium payment mode)

Premium payment mode Rebate: Yearly 3% of tabular premium
Half-yearly 1.5% of tabular premium
Sum Assured rebate for regular premium policies :

Upto Rs 50,000/-	Nil
Rs 50,000 to 1 lakh	1.00 Rs
Rs 1,01,000 & above	2.00 Rs

Jeevan Sukanya Policy Maturity Benefits

Maturity Benefit : In Jeevan Sukanya policy having plan no: 109, the life assured gets
= sum assured + bonuses as a maturity benefit
1) POLICY IS IN PAID UP CONDITION BEFORE DATE OF COMMENCEMENT:
If Premiums are not paid for at least 3 years then policy gets lapsed, on that condition only GSV is payable as maturity claim
2) POLICY LAPSED AFTER RISK COMMENCEMENT DATE / IN FORCE AS ON DATE OF MATURITY.
= Paid up value + Bonuses

Jeevan Sukanya Policy Death claim

DEATH BEFORE COMMENCEMENT OF RISK:

If Policy is in full force then death claim

= Sum of Premiums paid – Extra premium
2. If Policy is in Lapsed condition with minimum 3 years premiums paid then Guaranteed surrender value is payable.

If proposer and child also expire :

= Actual premiums paid + Premiums Waived till death of child

ON AND AFTER RISK COMMENCEMENT DATE:
= ( Full sum Assured / Paid up Value ) + Bonuses

LIC Jeevan Sukanya policy guaranteed Surrender Value

Policy can be surrendered after paying premiums for at least of 3 full years.

In above condition Guaranteed surrender value = 90% of all the premiums paid – 1st year premium

PAID UP VALUE :

1. Before Commencement of Risk = GSV
2. ON AND AFTER COMMENCEMENT OF RISK DATE
= Sum Assured x No of years Premiums paid / No of years Premiums payable
Under Single premium policies the paid up value will be Sum Assured.

Riders Available in LIC Jeevan Sukanya policy

There are two types of Riders Available:

Accidental Death Benefit- This can be obtained by the life insured once he is at least 18 years.
Premium Waiver Benefit – This rider can be opted by the proposer

Term Rider is not Available.

Bonus on LIC Jeevan Sukanya plan

Jeevan Sukanya Policy is with profit. Simple Reversionary Bonuses are declared per thousand of Sum Assured annually at the end of each financial year.

Additional Information

Loan Availability : Once the child attains an age of 18 years then Loan facility is available.

Lic Jeevan Sukanya Policy Benefit illustration

EXAMPLE 1:-
A child named Nikhil has taken Jeevan Sukanya Policy of Plan no: 102,
Age at entry of life assured – 0 yrs ,
Sum assured 1,00,000,
Age of proposer( Parent/Grandparent ) : 25 yrs,
Deferment period – 18 yrs,
Mode of payment – yearly,
Answer:-
Basic premium calculation:-
As per Tabular premium for plan 102-30 for age 0 years                                 rs. 49.15
  Less : mode rebate 3% – – 1.4745
and sum assured rebate – 1.00
46.6755 x 100
Multiply by sum assured in thousands                                                               4667.55
PREMIUM WAIVER BENEFIT
Tabular premium rate for PWB for age group of proposer up to 25 yrs and deferment period of 18 yrs will be ——————————– — Rs. 2.90
Less :- mode rebate @ 3%                                                                               – 0.087
2.813

PWB premium for waiver of net annual premium of Rs. 4667.55 x (2.813/100) = 131.29
Net installment premium = 4667.55 + 131.29 = 4798.84 i.e. Rs. 4799

6 March 2017

NSDL e-Governance Infrastructure Limited
PAN Services
Circular

Circular No.: NSDL/TIN/12017/001

January 10, 2017

Subject: New design of PAN card

All TEN-FCs & PAN Centres are hereby informed that the Income Tax Department (ETD) has prescribed certain changes in the existing design of the PAN Card. Accordingly, with effect from January 1, 2017, PAN cards are being printed as per the new design specifications approved by ITD.

Specimen of the PAN card as per new design is as under:
New pancard design

New features:

(i) Quick Response (QR) code having details of the PAN applicant is printed on PAN card for enabling verification of the PAN Card;

(ii) Legends have been incorporated for particulars Name, father’s, and date of birth fields. Position of PAN & signature has been changed.

(iii) Position of PAN & signature has been changed.

All TIN-FCs and PAN Centres are advised to take note of the above and advise applicants in the events of queries received from the applicants.

For and on behalf of
NSDL e-Governance Infrastructure limited
- See more at: http://taxguru.in/income-tax/new-design-of-pan-card-with-effect-from-january-1-2017.html#sthash.04k5153u.dpuf