Section 80C and section 10

Tax on a Sukanya Samriddhi account

सुकन्या समृद्धि और आयकर

Last reviewed: 11 November 2026

Two sentences on the National Savings Institute scheme page are the whole of the tax note repeated here.

• “Deposit qualifies for deduction under Sec.80-C of I.T.Act.”
• “Interest earned in the account is free from Income Tax under Section -10 of I.T.Act.”

The same 80C line appears on the Institute’s “at a glance” page. Both pages: Id_Pk=89 and Id_Pk=27.

What this page will not add

Some explanations call the account “EEE”, meaning the deposit, the interest, and the maturity payment are all exempt, or they cite a section number that is not 80C. Those sentences are not on the NSI pages above. They are not repeated here. If you need a view of the maturity payment, ask a tax adviser or read a current Income-tax circular. Do not treat this page as that advice.

The deposit cap is a scheme rule, not a tax ruling

Paragraph 4(2) of the 2019 Scheme caps deposits at ₹1,50,000 in a financial year. An excess accepted by mistake earns no interest and has to be returned. You cannot put in more than that in the hope of a larger deduction.

Whether a particular guardian can use the whole deposit under section 80C depends on the Income-tax Act and on other investments that also sit in that section. This page does not restate the Act’s overall ceiling, because the NSI lines quoted above do not state it.

Interest credited in the account follows the rate notified for the quarter. For October–December 2026 that rate is 8.2% a year. See the interest-rate page. The tax treatment above is about the character of the deposit and the interest, not a promise that 8.2% will last until maturity.