Is Sukanya Samriddhi Yojana Taxable? (2026 Rules)
Short answer: no. SSY is one of the few fully EEE instruments in India: deposits qualify for the Section 80C deduction (old regime), the 8.2% interest is tax-free, and the entire maturity amount is tax-free[Sec 10(11A)]. The only thing that changes under the new tax regime is the deduction on fresh deposits — the payout side is untouchable in both regimes.
SSY tax treatment at a glance
| Stage | Tax treatment | Legal basis |
|---|---|---|
| Deposit (₹250 – ₹1.5 lakh/year) | 80C deduction (old regime only) | Section 80C(2)(ix) |
| Annual interest (8.2%, revised quarterly) | Fully exempt | Section 10(11A) |
| Withdrawal at 18 (education/marriage, ≤50%) | Fully exempt | Section 10(11A); SSA Scheme, 2019 |
| Maturity (21 years from opening) | Fully exempt | Section 10(11A) |
What SSY's tax-free status is worth
Because interest and maturity are exempt under Section 10(11A), SSY's published rate is effectively a post-tax rate: at a 30% slab, 8.2% tax-free ≈ 11.7% pre-tax on a fixed deposit. The rate is notified quarterly by the Ministry of Finance — the exemption does not change with the rate.
Worked example
₹1,50,000 deposited yearly for 15 years (deposits allowed for the first 15 years; the account then compounds untouched until year 21) at 8.2% grows to roughly ₹69.8 lakh at maturity — about ₹47.3 lakh of it interest.
In a taxable deposit at the same rate, a 30%-slab parent would lose ₹14 lakh+ of that interest to tax over the period. In SSY, the entire corpus arrives tax-free in the daughter's hands, and no clubbing applies because the income is exempt.
Frequently Asked Questions
Is the Sukanya Samriddhi maturity amount taxable?
No. The full maturity amount — deposits plus all accumulated interest — is exempt from income tax under Section 10(11A) of the Income Tax Act. Nothing is added to anyone's taxable income when the account matures 21 years after opening.
Is SSY interest taxable?
No. Interest credited to a Sukanya Samriddhi account is fully exempt under Section 10(11A), with no upper limit. SSY currently earns 8.2% per annum (revised quarterly by the Ministry of Finance), and every rupee of it is tax-free.
Is SSY tax-free under the new tax regime?
The interest and maturity stay tax-free under both regimes — Section 10(11A) is not a Chapter VI-A deduction, so the new regime doesn't touch it. What you lose in the new regime is only the Section 80C deduction on fresh deposits.
Is the partial withdrawal at 18 taxable?
No. The withdrawal allowed after the girl turns 18 (up to 50% of the previous year's balance, for education or marriage) is exempt under Section 10(11A), the same as maturity proceeds.
Who claims the 80C deduction — parent or daughter?
The depositor (the parent or guardian who opened and funds the account) claims the Section 80C deduction, up to ₹1.5 lakh a year within the overall 80C limit, under the old tax regime. The exemption on interest and maturity also sits with the account regardless of regime.
Does clubbing of income apply to SSY interest?
Clubbing under Section 64(1A) applies to a minor child's taxable income — but SSY interest is exempt under Section 10(11A), so there is nothing to club. The exemption makes the clubbing question moot.
Do I report SSY interest in my ITR?
Yes, report the accrued interest under Schedule EI (Exempt Income). It does not increase tax, but keeps your return consistent and avoids mismatch queries as banks report interest data.
Related tools & guides
Sources & References
Legal basis: Section 10(11A) and Section 80C(2)(ix), Income Tax Act, 1961; Sukanya Samriddhi Account Scheme, 2019 (Ministry of Finance, Department of Economic Affairs).
Official sources
- Income Tax Department — Acts, Rules & Notifications
- National Savings Institute, Ministry of Finance (PPF rules)
Last verified against official sources: July 2026. Figures are researched from the government sources above and checked before publishing. See our Editorial & Verification Policy.
This page is for informational and educational purposes only and reflects the law as verified on the date shown above. Consult a qualified tax professional for advice on your specific situation. This is not financial or tax advice.