Welcome, dear reader, to an exploration of the Sukanya Samriddhi Yojana (SSY) and its relevance in the context of the Union Public Service Commission (UPSC) examination. In this article, we will delve into the details of this government scheme, which aims to secure the financial future of the girl child. So, without further ado, let us embark on this informative journey!
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The Genesis of Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana, launched by the Government of India in 2015, seeks to promote the welfare of the girl child and empower her through financial independence. The scheme was introduced as part of the Beti Bachao, Beti Padhao (Save the Girl Child, Educate the Girl Child) campaign. It is a commendable initiative that acknowledges the importance of gender equality and women’s empowerment in our society.
What is the Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana is a small savings scheme that aims to facilitate the financial planning of parents or guardians for their girl child’s education, marriage, or any other future expenses. This scheme not only offers attractive interest rates but also provides tax benefits under Section 80C of the Income Tax Act, 1961.
Who can open an account under the scheme?
Any parent or legal guardian of a girl child can open an account under the Sukanya Samriddhi Yojana. The scheme is applicable to families with up to two girl children. It is important to note that the account can only be opened for a girl child below the age of 10 years.
How does the Sukanya Samriddhi Yojana work?
Once you decide to open a Sukanya Samriddhi account, you will need to visit a designated bank or post office and complete the necessary paperwork. The account can be opened with a minimum deposit of Rs. 250, and subsequent deposits can be made in multiples of Rs. 100.
Account Operation and Deposits
The account can be operated by the parent or legal guardian until the girl child attains the age of 10 years. After that, the girl child herself can manage the account. The account will remain active for a total of 21 years from the date of its opening.
It is essential to make regular deposits into the account to keep it active. Failure to make the minimum deposit in a financial year may lead to the account being declared as dormant. However, it can be reactivated by paying a penalty of Rs. 50 per year along with the minimum deposit amount for the years of dormancy.
Interest Rates and Tax Benefits
One of the key attractions of the Sukanya Samriddhi Yojana is the high interest rate it offers. As of April 2021, the interest rate stands at 7.6% per annum, which is subject to change as per government notifications. The interest is compounded annually and credited to the account.
Furthermore, contributions made to the Sukanya Samriddhi Yojana are eligible for tax benefits under Section 80C of the Income Tax Act. This allows parents or legal guardians to claim deductions on the amount deposited, up to a maximum of Rs. 1.5 lakh per financial year.
Withdrawal and Maturity
While the Sukanya Samriddhi Yojana primarily focuses on long-term savings for the girl child, partial withdrawals are allowed under specific circumstances. The account holder can withdraw up to 50% of the amount accumulated in the account for higher education purposes once the girl child attains the age of 18 years.
The maturity period of the Sukanya Samriddhi account is 21 years from the date of opening. Upon maturity, the account holder will receive the entire balance, including the interest accrued over the years.
Sukanya Samriddhi Yojana and the UPSC
Now that we have gained a comprehensive understanding of the Sukanya Samriddhi Yojana, let us discuss its relevance in the context of the UPSC examination. The UPSC examination is one of the most prestigious and competitive exams in India, attracting aspirants from various backgrounds.
Financial Security for Aspirants
For aspirants preparing for the UPSC examination, financial security is often a concern. The Sukanya Samriddhi Yojana can serve as a valuable tool for parents or legal guardians to plan for their child’s future, including their higher education expenses. By investing in this scheme, families can ensure that their daughters have a secure financial backing, enabling them to pursue their dreams and aspirations.
Tax Benefits for UPSC Aspirants’ Families
The tax benefits offered by the Sukanya Samriddhi Yojana can also prove advantageous for families supporting UPSC aspirants. The deductions available under Section 80C can help reduce the overall tax liability, providing families with additional financial resources that can be utilized towards the aspirant’s UPSC preparations.
FAQs
Q1: Can a parent open multiple Sukanya Samriddhi accounts for their daughters?
A1: No, a parent or legal guardian can only open one Sukanya Samriddhi account for each girl child.
Q2: Can non-resident Indians (NRIs) avail of the Sukanya Samriddhi Yojana?
A2: No, NRIs are not eligible to open a Sukanya Samriddhi account. However, if a girl child becomes an NRI after opening the account, the account will continue to earn interest until maturity.
Q3: Can the Sukanya Samriddhi account be transferred from one bank/post office to another?
A3: Yes, the Sukanya Samriddhi account can be transferred from one authorized bank or post office to another.
Conclusion
In conclusion, the Sukanya Samriddhi Yojana is a remarkable initiative that aims to secure the financial future of the girl child. By providing an attractive interest rate, tax benefits, and flexibility in withdrawals, this scheme empowers parents or legal guardians to plan for their daughter’s education and other expenses. In the context of the UPSC examination, the Sukanya Samriddhi Yojana can provide much-needed financial security and support for aspiring candidates and their families. So, consider opening a Sukanya Samriddhi account today and pave the way for a brighter future for the girl child!