2017 · Q61
Which one of the following statements about the Sukanya Samriddhi Scheme is NOT correct?
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- AOnly parents of girls up to the age of 10 years can open such accounts in their daughters name
- BContributions are eligible for tax benefits under Section 80C of the Income Tax Act
- CInterest earned thereon is exempted up to Rs. 1500 per annum
- DA maximum of Rs. 1.50 lakh per annum can be invested in this account
Explanation
Under Sukanya Samriddhi Yojana accounts are opened for girls up to age 10, deposits qualify for deduction under section 80C, and up to Rs 1.5 lakh per year may be invested. The interest, however, is fully tax-exempt (the scheme has EEE status) – it is not exempted only up to Rs 1500 per annum. Hence (C) is the statement that is NOT correct.