PLI / RPLI MCQ Questions

 Disclaimer: - All the Information provided in this post are Compiled by A. Praveen Kumar, PA, Medak HO. Author of blog does not accepts any responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents.

PLI /RPLI Basic Features :

1. Find the wrong from the following

A. Suraksha- Whole Life Insurance

B. Santhosh- Endowment Assurance

C. Yugal Suraksha- Convertible Whole Life Insurance

D. Sumangal- Anticipated Endowment Assurance

Ans: C

2. Anticipated Endowment Assurance Policy term

A. 10 Years and 15 Years

B. 10 Years and 20 years

C. 15 Years and 20 Years

D. 20 Years and 30 Years

Ans : C

3. Under extended clientele base of PLI for 41 years and above , maximum limit of Sum Assured

A. 8 times of Gross Annual Income

B. 7 times of Gross Annual Income

C. 10 times of Gross Annual Income

D. 12 times of Gross Annual Income

Ans:  B

4. The minimum and maximum Sum Assured for RPLI is

A. Minimum of 5000 maximum of 5 lakhs

B. Minimum of 5000 maximum of 5 lakhs

C. Minimum of 10000 maximum of 5 lakhs

D. Minimum of 10000 maximum of 10 lakhs

Ans: D

5. Find the wrong feature of RPLI polices

A. All RPLI Schemes have compulsory medical examination

B. For non standard age proof of RPLI, maximum age limit is 35 years

C. For non medical policies, the maximum sum assured is 25000/-

D. For non medical policies, the maximum age is 35 years

Ans : B

6. 10 years RPLI policy also known as

A. GRAM PRIYA

B. GRAM SUMANGAL

C. GRAM SANTHOSH

D. GRAM SUVIDHA

Ans: A

7.The maximum age limit of entry of RPLI policy is

A. 45 Years in respect of WLA & EA and 50 years of other policies

B. 50 Years in respect of WLA & EA and 45 years of other policies

C. 55 Years in respect of WLA & EA and 45 years of other policies

D. 55 Years in respect of WLA & EA and 40 years of other policies

Ans: C

8. In respect of Children policy, the Child age should be

A.1 to 10 Years

B.5 to 18 Years

C.1 to 18 Years

D.5 to 20 Years

Ans: D

9. Identify the wrong conversion of the policy

A. The WLA policy can be converted to EA policy after 5 Years

B.The CWL policy can be converted into EA policy at the end of 5 year

C.The WLA policy can be converted into EA policy after 1 year

D.The EA policy amount can be reduced after 1 year of Issue and 1 year before of maturity

Ans : A

10. The nomination can be made

A.Maximum for One Person

B.Maximum for two persons

C.Maximum for three persons

D.Maximum for five persons

Ans: C

11. For Yugal Suraksha (Joint Life Assurance} term period

A. Minimum 5 Years Maximum 10 Years

B. Minimum 5 Years Maximum 20 Years

C. Minimum 10 Years Maximum 15 Years

D. Minimum 10 Years Maximum 20Years

Ans: B

12. Acceptance of Cheque towards payment of PLI/RPLI premium to be accounted as

A. Date on Presentation of cheque as date of Payment of Premium

B. Date of Clearance of Cheque as date of Payment of Premium

C. Either A or B

D. Premium Should not be accepted through Cheque

Ans: A

13. For other than professional proponents if the sum Assured Rs 20 lakhs above, any of the following document not required

A. Aadhar Card

B. Salary Skip

C. Bank Statement

D. ITR of last FY

Ans: A

14. For PLI Polices with Sum Assured greater than Rs 20 lakhs, the maximum Sum restricted till 40 years

A. 5 times of Gross Annual Income

B. 7 times of Gross Annual Income

C. 10 times of Gross Annual Income

D. 15 times of Gross Annual Income

Ans : C

                           LAPSE AND REVIVAL

15.The PLI policy treated as lapsed

A. Policy is less than two year old and if due installment are not paid within 6 month the policy may be treated as lapsed

B. Policy is less than three year old and if due installment are not paid within 6 month the policy may be treated as lapsed

C. Policy is less than five year old and if due installment are not paid within 12 month the policy may be treated as lapsed

D. Policy is less than three year old and if due installment are not paid within 12 month the policy may be treated as lapsed

Ans:B

16.In respect of revival of premium, interest per Annum is

A. 6%

B. 8 %

C. 10%

D. 12%

Ans: D

                SURRENDER

17. In respect of Surrender,no bonus is admissible

A. Before completion of 3 years

B. Before completion of 5 years

C. Before completion of 7 years

D. Before completion of 10 years

Ans: B

18. Which of the policy cannot be surrender

A. Endowment Assurance policy

B. Whole Life Insurance Policy

C. Convertible Whole Life Insurance

D. Anticipated Endowment Assurance Policy

Ans: D

LOANS

19. No loan shall be applicable to 

A. Children Policy and Sumangal policy

B. Children Policy and Santhosh Policy

C. Children policy and Suraksha Policy

D. Children Policy and Suvidha Policy

Ans: A

20. Identify wrong term on Loan of the Policy

1. EA policies loan can be availed after 3 Years

2. WLA policies loan can be availed after 5 Years

3. Interest @10% p.a calculated on six month basis

4. Interest is payable once in Six Months

Ans: B

  Claims

21. The Succession certificate may waived by the Head of Circle in respect of PLI death claim where no nomination is exists

A. Rs 100000/-

B. Rs 200000/-

C. Rs 300000/-

D. Rs 500000/-

Ans: C 

22. The time limit for settlement of death Claim involving Investigation

A.  Within 30 days from date of receipt of Claim

B.  Within 60 days from date of receipt of Claim

C.  Within 90 days from date of receipt of Claim

D.  Within 180 days from date of receipt of Claim

Ans : C

               INCENTIVE

23. Development officer will be paid incentive of total PLI new business premium (NBP) procured by Direct agents attached to that DO

A. 1 %

B. 2%

C. 3%

D. 5%

Ans: A

24. Renewal incentive on PLI will not be paid to

A. Direct Agents

B. Franchise outlets

C. Departmental Staff

D. Development officer

Ans: D

25. For all types of RPLI policies, each category of sales force will get following percentage procurement incentive on premium

A. 5 %

B. 7%

C. 10%

D. 12%

Ans: C

BONUS RATES 

26. The latest bonus rates for PLI Endowment Assurance (2020-2021]

A. 72 % per thousand of Sum Assured

B. 56 % per thousand of Sum Assured

C. 54 % per thousand of Sum Assured

D. 52% per thousand of Sum Assured

Ans : D

27. The latest bonus rates for RPLI Whole Life Assurance (2020-2021]

A. 65% per thousand of Sum Assured

B. 60 % per thousand of Sum Assured

C. 55 % per thousand of Sum Assured

D. 50% per thousand of Sum Assured

Ans : B

                   CORE INSURANCE SOLUTION 

28.The sequence functionality of surrender polices process is in McCamish is

A. Activate

B. Paying all the due premiums

C. Indexed for surrender

D. 1,2,3   B. 1,3,2    C. 2,3,1    D. 2,1,3

Ans: D

28. The latest DARPAN PLI APP version is

A. 2.1.1.0

B. 2.2.1.0

C. 2.3.1.0

D. 2.4.1.0

Ans: D 

DIRECT AGENTS / SALES FORCE

29. The Direct agents are under the control of

A. Sub Divisional Heads

B. Divisional Heads

C. Development officer

D. ADM/DDM PLI

Ans: C

30. The sales force I.e. Direct agents, F.O and GDS can procure PLI/RPLI business from outside the Postal Divisional with the permission of concerned

A.PLI Development offcier

B.Sub divisional Head

C.Divisional Head

D.ADM/DDM (PLI) at Regional level.

Ans: D

31. If the PLI sales force procure the business outside parent division, then the policy will be indexed at

A. At the CPC where the sales force belongs

B. At the CPC where the Insurant resides

C. Either A or B

D. None

Ans : B

32. The retired Govt officer /official can apply engagement as Filed officer till he/she attains

A. 62 Years

B. 65 Years

C. 68 Years

D. 70 Years

Ans: B

33.A PLI/RPLI Direct Agent is one___________

A.Who sells through the internet

B.Who works on the Post Office counters

C.Who works in Post office office setup

D.Who sells direct to the client

Ans : D

34.The minimum education qualification required for recruiting direct agents where Population he reside more than 5000

A. 7^th Class

B. 10^th Class

C. 12^th Class

D. Graduation

Ans  B 

MARKETING SKILLS

35. Cross-selling is

A.Selling with a cross face

B.Cross country marketing

C.Selling to friends

D.Selling other products to existing customers

Ans. D

36. Market information requires

A.Knowledge of industries

B.Knowledge of households

C.Knowledge of peers

D.Knowledge of customer’s tastes

Ans.D

37. A ‘Target Group’ is

A group of sellers

A group of buyers

A group of person to whom sales should be focused

D. A group of products

Ans. C

38. Good marketing requires one of the following

A.Proper planning

B.Good team work

C.Good communication skills

D.Knowledge of products

Ans : B

 

 

 

 

 

 

 

 

Parliament passes bill doubling ceiling of tax free gratuity to Rs 20 lakhs

The Indian Parliament on March 22, 2018 passed the Payment of Gratuity (Amendment) Bill that will empower the government to fix the amount of tax-free gratuity and the period of maternity leave with an executive order.

The bill was passed by the upper house of the Parliament, Rajya Sabha, which has failed to function properly since the past two weeks due to protests by various parties. The House passed the key bill without discussion. 

Rajya Sabha on March 22 and Lok Sabha on March 15, 2018

Enhance the ceiling of tax-free gratuity to 20 lakh rupees

Main Features

The amendment bill empowers the government to fix the amount of tax-free gratuity and the period of maternity leave with an executive order. 

The legislation will enable the government to enhance the ceiling of tax-free gratuity to 20 lakh rupees from the existing 10 lakh rupees for employees falling under the Payment of Gratuity Act. 

It allows the government to fix the period of maternity leave for female employees as deemed to be in continuous service in place of the existing 12 weeks.

After enactment of the Act, the power to notify the ceiling of the amount of gratuity under the Payment of Gratuity Act, 1972 shall stand delegated to the Central Government so that the limit can be revised from time to time keeping in view the increase in wage and inflation and future pay commissions.  

Background and Act

The Payment of Gratuity Act, 1972 applies to establishments employing 10 or more persons.

The main purpose for enacting this Act is to provide social security to workman after retirement, whether retirement is a result of superannuation, or physical disablement or impairment of vital part of the body.

Therefore, the Payment of Gratuity Act, 1972 is an important social security legislation to wage earning population in industries, factories and establishments. 

The present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh.

The provisions for Central Government employees under Central Civil Services (Pension) Rules, 1972 with regard to gratuity are also similar.

Before implementation of 7th Central Pay Commission, the ceiling under CCS (Pension) Rules, 1972 was Rs. 10 Lakh. However, with implementation of 7th Central Pay Commission, in case of Government servants, the ceiling has been raised to Rs. 20 Lakhs. 

The amendment to the payment of gratuity law comes in the backdrop of Maternity Benefit (Amendment) Act, 2017 enhancing the maximum maternity leave period to 26 weeks

Direct Recruitment to the cadre of Postman/Mail Guard : Telangana Circle

Direct Recruitment to the cadre of Postman/Mail Guard : Telangana Circle

CLICK HERE TO DOWNLOAD NOTIFICATION

HAPPY UGADI-2018

Deputation/Foreign Service of regular employees from DoP to IPPB : Amendments in Important dates - DoP Order Dated 19.01.2018.

 The date of examination for deputation by India Post employees to various officer posts in IPPB scheduled to be conducted on 20.01.2018 has been extended. As per the new advertisement from IPPB, date of download of Admit card has also revised.

Travel entitlements of Government employees for the purpose of LTC post Seventh Central Pay Commission - clarification reg : DoPT

Travel entitlements of Government employees for the purpose of LTC post Seventh Central Pay Commission - clarification reg : DoPT.

CLICK HERE TO VIEW & DOWNLOAD THE DOPT ORDER

Sukanya Samriddhi Yojna- All You Want to Know

Our Prime Minister Sri.Narendra Modi has Launched Sukanya Samridhi Yojna‘ (girl child prosperity scheme) with the vision to provide for Girl Child Education and Her Marriage Expense. Sukanya Samriddhi Account Scheme is a small deposit scheme for girl child, as part of ‘Beti Bachao Beti Padhao’ campaign, which would fetch yearly interest rate of 8.1% (WEF 01.01.2018) and provide income tax deduction Under section 80C of the Income Tax Act,1961.

Date of Commencement of Scheme- Sukanya Samriddhi Account Scheme is been notified by Ministry of Finance vide Notification No. G.S.R.863(E) Dated 02.12.2014. Scheme become operational by notification of rules namely‘Sukanya Samriddhi Account Rules, 2014’. These Rules were subsequently amended vide Notification No.G.S.R.323(E) dated-18.03.2016 by which government has notified ‘Sukanya Samriddhi Account Rules, 2016’.

Depositor– For this scheme Depositor is an individual who on behalf of a minor girl child of whom he or she is the guardian and deposits amount in account opened under this scheme. Under the revised rules definition of depositors also include Account Holder.

Who can be ‘Guardian’ under this Scheme – In relation to a minor girl Child Guardian means

(i) either father or mother; and

(ii) where neither parent is alive or is incapable of acting, a person entitled under the law for the time being in force to have the care of the property of the minor.

(iii) Under the Revised Rules Guardian Includes Legal Guardian too, Which means Parents of adopted Child adopted are also Guardian under the revised rules.

One Girl One Account– Depositor cannot open multiple or more than one account in the name of a Girl Child. Rules been changed to specify that more than once account cannot be opened for a Girl Child even if depositor are different.

Can be opened for Maximum two girls – Natural or legal guardian of a girl child allowed to open one account each for two girl children’s subject to below conditions.

Account opening for more than two girls – Under this scheme natural or legal guardian of the girl child shall be allowed to open more than two Accounts for girl children’s in a family if such children are born in the first and/or in the second order of birth, on production of a certificate to this effect from the competent medical authority regarding the birth of such multiple girl children in the first two orders of birth in a family. But account under the scheme not allowed to be opened for girl child born in second or successive birth if first order of birth itself in a particular family results in two or more surviving girl children.

Age Restriction for Opening of Account- The account may 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 ten years and any girl child, who had attained the age of ten years, one year prior to the commencement of these rules shall also be eligible for opening of account under these rules. Scheme is been commenced from 02.12.2014.

Documents to Open the Account and how to open the account- Birth certificate of a girl child in whose name the account is opened shall be submitted by the guardian at the time of opening of the account in post office or bank along with other documents relating to identity and residence proof of the depositor.

Where one can open account?– At any post office in India doing savings bank work and Branch of a commercial bank authorised by the Central Government to open an account under Sukanya Samriddhi Account Scheme.

Document required for opening Sukanya Samriddhi account are:-

·         Birth documents of girl child (Birth certificate)

·         Address proof of the Guardian

·         Identity proof of the Guardian

·         3 Photos of of the Guardians and 3 photos of the child

·         Pan card and Aaadhar card copies of of the Guardians

No Fixed Interest Rate- Under this scheme Interest rate is not fixed and Government will declare on yearly basis the Interest on accounts opened under these rules. For the Financial Year 2014-15 Govt. has declared Interest Rate of 9.10% vide Notification F.NO. 2/3/2014.NS-II, DATED 20-1-2015. For Financial Year 2015-16 Govt. notifies Interest Rate of 9.20 % by Office Memorandum (OM) No.6/01/2011-NS.II dated March 31, 2015. For FY 2016-17 govt. has notified interest Rate of 8.60% per Annum.

How is the interest rate on deposits calculated? 
The government fixes interest rates on quarterly basis based on the G-sec yields. The interest rate spread that the SSY enjoys over the G-sec rate of comparable maturity is 75 basis points. 
The interest rate since its launch is as follows: 
From April 1, 2014: 9.1% 
From April 1, 2015: 9.2% 
From April 1, 2016 -June 30, 2016: 8.6% 
From July 1, 2016 -September 30, 2016: 8.6%  
From October 1, 2016-December 31, 2016: 8.5% 
From July 1, 2017- December 31, 2017: 8.3% 
From Jan 1, 2018- 31 March,2018 is 8.1%
Interest at the rate, to be notified by the government, compounded yearly will be credited to the account. 
In case the account holder opts for monthly interest, the same will be calculated on the balance in the account on completed thousands, in the balance which will be paid to the account holder and the remaining amount in fraction of thousand will continue to earn

Interest After Maturity of account– Earlier post maturity also if account holder do not close the account he was eligible for interest till final closure of the account but now No interest shall be payable once the Account completes twenty-one years from the date of its opening.

No Interest on Deposit made on or after 10th day of Month

The interest shall be calculated for the calendar month on the lowest balance in an Account on the deposits made between the close of the tenth day and the end of the month. So Account holder will not get any interest on amount deposited after 10th of the Month for the Month of Deposit.

Option of Monthly Interest

Revised scheme do not gives option of Monthly Interest.

Interest Compounding Monthly/ Yearly

Interest will be compounded yearly and will be credited to account till the account completes twenty one years from the date of opening. The interest shall be calculated for the calendar month on the lowest balance in an Account on the deposits made between the close of the tenth day and the end of the month.

Interest on Contribution in Excess of Rs. 1.50 Lakh Per Annum and withdrawal of excess payment

Deposit in excess of one lakh fifty thousand rupees in any financial year shall, if accepted due to any accounting error, not be eligible for any interest and such amount, which is deposited in excess of an annual ceiling of one lakh fifty thousand rupees, may be withdrawn anytime by the depositor.

Maximum and Minimum Deposit- The account may be opened with an initial deposit of one thousand rupees and thereafter any amount in multiple of one hundred rupees may be deposited subject to the condition that a minimum of one thousand rupees shall be deposited in a financial year but the total money deposited in an account on a single occasion or on multiple occasions shall not exceed one lakh fifty thousand rupees in a financial year.

Minimum – Rs, 1000/- Per Year

Maximum- Rs. 1,50,000/- Per Year

Term Period – Deposits can be made till completion of Fifteen Years (Earlier it was fourteen years) from the date of opening of the account. The maturity of the account is 21 years from the date of opening of account. In other words No Deposit for the period from 16th to 21st Year of account.

Regularisation of irregular account and Penalty – Where minimum amount of Rs. 1000/- a year has not been deposited than such irregular account may be regularised on payment of a penalty of fifty rupees per year along with the minimum subscription of Rs. 1000/- for the year (s) of default any time till the account completes fourteen years.

Interest on Account in Default

If in the case of any Account, the default is not regularised within fifteen years of the opening of the Account, then the whole deposit, including the deposits made prior to the date of default, shall be eligible only for interest rate prescribed for Post Office Savings Bank at the time of its maturity and any amount credited wrongly by way of interest into an Account under default shall be reverted to the Government account as soon as it comes to the notice of the Bank or the post office concerned. ut if the default occurred because of the death of the guardian of the Account holder who opened the account than account holder will get interest as applicable to Sukanya Samriddhi account.

Interest on Change in Status of Account holder to non-citizen or non-resident of India

In the event of change of status of the Account holder’s citizenship or residential status, no interest shall be deemed to accrue to the Account from the change of such status and the Account shall be deemed to be closed prematurely from that date. In case, any interest was credited to the Account after the change of resident status or citizenship of the Account holder, be reverted to the Government account by the post office or the Bank concerned, immediately on being informed of such change in the status of the Account holder.

Mode of Deposit – Deposit can be made in any of the following mode :-

a. cash

b. by cheque or demand draft drawn in favour of the postmaster of the post office concerned or the Manager of the Bank concerned where the Account is opened, with an endorsement on the back of such instrument made and signed by the depositor indicating the name of the Account holder and Account number in which the deposit is to be credited;

c.through electronic means (e-transfer) in the concerned post office or Bank if such post office or bank has access to the facility of CBS.

Date of Credit of Deposit Made

(a) where the deposit is made by cheque, the date of encashment of the cheque;

(b) where the deposit is made by demand draft, the date of submission of the same to the Bank or post office; and

(c) where the deposit is made by e-transfer, the date of deposit.

Who can Operation the account and can the girl child operate the account?

(1) The Account shall be operated by the guardian till the beneficiary Account holder attains the age of ten years or till the beneficiary Account holder attains the age of eighteen years.

(2) The Account shall be operated by the beneficiary Account holder after such Account holder attains the age of eighteen years: Provided that the Account may be operated by the beneficiary Account holder after such Account holder attains the age of ten years.

Premature closure of account –

Though the duration of the Sukanya Samriddhi account is 21 years from the date of the opening of the account but request for premature closure can be made after 5 years from the date of opening of account in following scenarios :-

1. Untimely death of the account holder – In the unfortunate event of death of the beneficiary account holder (girl child), the account shall be closed immediately on production of death certificate issued by the competent authority. In that case the balance at the credit of the account shall be paid along with the accrued interest till the date of death shall be paid to the guardian.

2. Account holder become a non-citizen or NRI- If, after the opening of an Account, the Account holder becomes a non-citizen or non-resident of India, intimation to this effect shall be given by the guardian or the Account holder to the post office or the Bank concerned, as the case may be, within a period of one month from the date of such status of the Account holder’s citizenship or resident status. No interest shall be deemed to accrue to the Account from the change of such status and the Account shall be deemed to be closed prematurely from that date and credit in the account will be returned to along with interest due, to the Account Holder.

3. Extreme compassionate grounds– Where the post office or the Bank concerned is satisfied, in cases of extreme compassionate grounds such as medical support in life-threatening diseases of the Account holder or death of the guardian, that the operation or continuation of the Account is causing undue hardship to the Account holder, it may, after complete documentation, by order and for reasons to be recorded in writing, allow premature closure of the Account.

4. For Other Reasons– Premature closure of an Account may be permitted, anytime after the opening of an Account, for any reason other than provided under this sub-rule, and in which case the whole deposit shall be eligible only for the interest rate prescribed for the Post Office Savings Bank.

Pass book

(1) On opening an Account, the guardian shall be given a pass book bearing the name, address and date of birth of the Account holder, date of opening of Account, Account number, name and address of the guardian, relationship with the Account holder and the amount deposited.

(2) A duplicate passbook may be subsequently issued in the event of loss, mutilation, etc., of the original passbook, on the written request of the guardian or the Account holder, on payment of a fee of fifty rupees and such fees shall be creditable to the Government account.

(3) The guardian or the Account holder shall have the option to maintain the Account records exclusively in electronic form, provided the post office or Bank concerned has access to the facility of CBS.

Transfer of account to other place –

(1) The Account may be transferred anywhere in India and from or to post offices and from or to Banks and between post office and Bank, free of cost on furnishing of proof of shifting of residence of either the guardian or the Account holder and otherwise, on payment of a fees of one hundred rupees to the post office or the Bank to which the transfer is made.

(2) The process of transfer shall be effected electronically if the post office or the Bank concerned, has access to the facility of CBS.

Pre-Mature Withdrawal for Education

(1) Withdrawal of upto a maximum of fifty per cent of the balance in the Account at the end of the financial year preceding the year of application for withdrawal, shall be allowed for the purpose of higher education of the Account holder but such withdrawal shall not be allowed unless the Account holder attains the age of eighteen years or has passed tenth standard, whichever is earlier.

(2) The application for withdrawal shall be accompanied by a documentary proof in the form of a confirmed offer of admission of the Account holder in an educational institution or a fee-slip from such institution clarifying such financial requirement.

(3) The withdrawal may be made as one lump sum or in instalments, not exceeding one per year, for a maximum of five years, subject to the limit specified in point (1) above.

(4) withdrawal shall be restricted to the actual demand of fee and other charges required at the time of admission as shown in the offer of admission or the relevant fee-slip issued by the educational institution.

Closure on maturity or before maturity due to Marriage of Account Holder and Payment of Interest and Principal on Maturity

(1) The Account shall mature on completion of a period of twenty-one years from the date of its opening but final closure of the Account may be permitted before completion of such period of twenty one years, if the account holder, on an application, makes a request for such premature closure for reasons of intended marriage of the Account holder and on furnishing of age proof confirming that the applicant will not be less than eighteen years of age on the date of marriage. No such premature closure shall be made before one month preceding the date of the marriage or after three months from the date of such marriage.

(2) On maturity, the balance including interest outstanding in the Account shall be payable to the Account holder, on an application by the Account holder for closure of the Account, and on furnishing documentary proof of her identity, residence and citizenship.

(3) No interest shall be payable once the Account completes twenty-one years from the date of its opening.

Tax Benefit – The amount deposited towards Sukanya Samriddhi Account is deductible under section 80C of Income tax Act,1961 upto Rs.1.5 lakhs as notified by Notification No. 09/2015 dated 21.01.2015. Amount deposited in this account will be counted in overall limit of Rs. 1.50 Lakh under section 80C. Interest earned in this scheme as well as maturity amount is exempt from Income Tax wef F.Y. 2014-15. Also Read- Interest on & withdrawal from Sukanya Samriddhi Account exempt from Tax

Comparison with PPF in respect of Tax Benefit- Investment in Both PPF & Sukanya Samriddhi Account is eligible for deduction under section 80C of the Income Tax Act, 1961. Like PPF in Sukanya Samriddhi Account also Interest and Maturity amount is exempt from Tax.

Benefits of Sukanya Samriddhi Account Scheme-

1. Higher Interest Rate

2. Tax Benefit Under Section 80C

3. Payment on Maturity to Girl Child.

4. Flexibility in Deposits- Any Number of time amount can be deposits in Multiple of Rs. 100 subject to Maximum Limit of Rs. 1.50 Lakh per year.

5. Transferable Anywhere in India.

6. Even Girl Child can operate after she attains the Age of 10 Year.

Source : https://taxguru.in/