Payment from Sukanya Samriddhi Account [Section 10(11A)] :
(i) A special small savings instrument for the welfare of the girl child was announced in the Union Budget in July 2014. To give effect to this announcement, Sukanya Samriddhi Account Rules, 2014 have been introduced.
(ii) The following are the tax benefits envisaged in the Sukanya Samriddhi Account scheme: –
(a) The investments made in the Scheme will be eligible for deduction under section 80C.
(b) The interest accruing on deposits in such account will be exempt from income tax.
(c) The withdrawal from the said scheme in accordance with the rules of the said scheme will be exempt from tax.
(iii) New clause (11A) has been inserted in section 10 to provide that any payment from an account opened in accordance with the Sukanya Samriddhi Account Rules, 2014, made under the Government Savings Bank Act, 1873, shall not be included in the total income of the assessee.
Accordingly, the interest accruing on deposits in, and withdrawals from any account under the said scheme would be exempt.