Introduction:
The Modi government has recently raised the interest rate for the Sukanya Samridhi Yojana (SSY) scheme ahead of the Lok Sabha elections in 2024. This move aims to provide better financial benefits to account holders and encourage more people to invest in the scheme. In this article, we will discuss the latest SSY rates, withdrawal and maturity rules, and the consequences of missing the income tax return filing deadline.
Sukanya Samridhi Yojana Interest Rate Hike:
The Narendra Modi government has increased the interest rates on the Sukanya Samridhi Yojana scheme by 20 basis points for the January-March quarter. The new interest rate stands at 8.2%, up from the previous 8%. This government-backed scheme offers guaranteed returns and allows investors to claim income tax benefits on up to ₹1.50 lakh invested in an SSY account under Section 80C of the Income Tax Act. Additionally, the interest generated through the Sukanya Samriddhi Account is tax-free.
Sukanya Samriddhi Account Withdrawal and Maturity Rules:
Once a girl reaches the age of 18, guardians can withdraw up to 50% of the account balance in a financial year. These withdrawals can be made in a single transaction or multiple installments, with a maximum limit of one withdrawal per year for up to 5 years.
Small Savings Schemes’ Interest Rates for Q4FY24:
Apart from the Sukanya Samridhi Yojana, the government has also increased the interest rates for other small savings schemes. The three-year term deposit scheme has been raised by 10 basis points to 7.1% for the January-March quarter. The latest interest rates for various schemes are as follows:
- PPF: 7.1%
- SCSS: 8.2%
- Sukanya Yojana: 8.2%
- NSC: 7.7%
- PO-Monthly Income Scheme: 7.4%
- Kisan Vikas Patra: 7.5%
- 1-Year Deposit: 6.9%
- 2-Year Deposit: 7.0%
- 3-Year Deposit: 7.1%
- 5-Year Deposit: 7.5%
- 5-Year RD: 6.7%
Income Tax Return Filing Deadline Reminder:
The Income Tax Department has reminded taxpayers to file their income tax return by December 31, 2023. Failure to meet this deadline can result in penalties. Taxpayers who missed the July 31 deadline for the financial year 2022-23 must file their belated/revised ITR by the December 31 deadline. It is important to verify the ITR filing within 30 days to ensure its processing by the income tax department.
Consequences of Missing the ITR Filing Deadline:
Missing the December 31 deadline for belated ITRs can still allow taxpayers to file updated returns. However, late filings attract interest at a rate of 1% per month or part thereof, calculated from the original due date. Additionally, late filing penalties are imposed under section 234F, with penalties ranging from ₹1,000 to ₹5,000 depending on the taxable income.
FAQs:
1. What is the new interest rate for the Sukanya Samridhi Yojana scheme?
The interest rate has been increased to 8.2% for the January-March quarter.
2. Is the interest generated through the Sukanya Samriddhi Account tax-free?
Yes, the interest generated is tax-free.
3. Can guardians withdraw money from the Sukanya Samriddhi Account?
Yes, guardians can withdraw up to 50% of the balance after the girl reaches 18 years of age.
4. What are the consequences of missing the income tax return filing deadline?
Late filings attract interest at a rate of 1% per month and may incur penalties ranging from ₹1,000 to ₹5,000.
5. What are the latest interest rates for other small savings schemes?
The latest interest rates for various schemes range from 6.7% to 8.2%.