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 How to learn personal finance? Personal finance in India is a vast and dynamic field, with its own unique set of challenges and opportunities. Here's a breakdown to get you started: Challenges: Low financial literacy: Many people lack basic knowledge about managing money, making them susceptible to scams and poor financial decisions. Income inequality: The gap between the rich and the poor is significant, making it harder for many to achieve financial security. Inflation: Rising prices can erode savings and make it difficult to plan for the future. Formal vs. informal sector: A large part of the workforce is employed in the informal sector, which often lacks access to financial products and services. Opportunities: Growing middle class : The Indian middle class is expanding rapidly, creating a larger market for financial products and services. Government initiatives: The government is taking steps to improve financial literacy and access to financial service...
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Sukanya Samriddhi Yojana (SSY) Interest Rate & Tax Benefits & Saving Schemes

 Sukanya Samriddhi Yojana (SSY) Interest Rate & Tax benefits & Saving Schemes & Myat Finance 


Sukanya Samriddhi Yojana (SSY) Interest Rate & Tax benefits & Saving Schemes & Myat Finance

Sukanya Samriddhi Yojana (SSY) is a small deposit scheme launched by the Government of India under the Beti Bachao Beti Padhao (BBBP) campaign. It is a dedicated scheme for the girl child and is aimed at encouraging the birth of girl child and providing for her education and marriage expenses.

Eligibility:

  • The account can be opened in the name of a girl child who is less than 10 years old on the date of opening the account.
  • Only one account can be opened in the name of a girl child.
  • The account can be opened by the parents or legal guardian of the girl child.
  • The account can be opened in any Post Office or authorized bank.

Contribution:

  • The minimum contribution per year is ₹250.
  • The maximum contribution per year is ₹1.5 lakh.
  • The contribution can be made in cash, cheque, DD, or NEFT.

Interest rate:

  • The interest rate on SSY is fixed by the Government of India.
  • The interest rate for the current financial year (2023-24) is 7.6% per annum.

Maturity:

  • The account matures after 21 years from the date of opening the account.

Withdrawal:

  • The account can be closed prematurely after the girl child attains the age of 18 years for the following purposes:
    • Higher education of the girl child
    • Marriage of the girl child
  • The account can also be closed after the girl child attains the age of 21 years for any purpose.

Tax benefits:

  • The contribution to SSY is eligible for deduction under Section 80C of the Income Tax Act, 1961.
  • The interest earned on SSY is exempt from income tax under Section 10(10D) of the Income Tax Act, 1961.

Benefits of SSY:

  • SSY is a safe and secure investment option.
  • The interest rate on SSY is relatively high.
  • The contribution to SSY is eligible for tax deduction.
  • The interest earned on SSY is exempt from income tax.

SSY is a good option for parents who want to save for the future of their girl child. It is a safe and secure investment option with attractive tax benefits.

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