How does the SSY scheme benefit the girls of India?

In Indian culture, all families consider the girl child as a blessing and a boon. They are the pride of the family. Many schemes and programmes are introduced by the Government of India to promote their welfare. Such facilities and benefits are one of the main reasons for a successful and influential democracy.

The primary motto of every country is to promote equality and unity amongst its citizens. Girls, especially, should not be deprived of any of the facilities that they are entitled to receive. Hence, Sukanya Samriddhi Yojana defines the importance of raising girls and educating them to progress in the future. There were times when girls did not get enough support from their families and were married off at an early age. Nowadays, the mindsets of people are changing, and girls are receiving a preference for jobs in particular sectors of the economy.

How does the scheme benefit them?

The Beti Bachao Beti Padhao initiative launched by Prime Minister Narendra Modi in 2015, includes innumerable benefits for girls. It encourages them to excel in every field, like employment, education, and other activities. The SSY scheme provides incentives to them so that they can start saving for securing a better future. Following are the benefits it offers:

It helps save for educational expenses:

The parent or guardian of a girl aged less than ten years is eligible to open an account for not more than two daughters. After they turn 18, parents can withdraw up to 50 per cent of the balance and use it to meet educational expenses provided they submit the proof of admission.

Get triple tax benefits:

The tax benefits under this scheme are plenty. Deposits up to INR 1.5 lakh is eligible for a deduction under Section 80C of Income Tax Act. The interest earned upon the deposit is tax-free and calculated annually. The amount received by the account holder upon maturity is tax-free.

The account requires a minimum deposit of INR 250:

The scheme requires a minimum deposit of INR 250 and a maximum deposit amount up to INR 1.5 lakh. All account holders must deposit until 15 years from the date of account opening, failing which the account will go under default. Reactivate it after 15 years from initiation with a fine of INR 50 per year.

SSY does not require any further deposits after the account reaches its maturity period, i.e., after 21 years from the date of initiation.  The interest rates offered on it can go as high as 8.6 per cent as compared to other government-aided schemes.

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